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Students taking a multiple-choice exam rarely guess randomly. They usually can rule out some answers as preposterous and identify others as good candidates. Moreover, even students who have never taken Psychology 1 would probably know who Pavlov was, or what we mean by sibling rivalry. Suppose that the exam above was our Psychology 1 exam, where each question had four alternative choices.
(a) What would you conclude if the student got a score of 70?
(b) How high a score would the student have to get so that you were 95% confident that the student wasn't just guessing at random?
A firm plans to raise $4 million by borrowing at an interest rate of 16 percent and to raise $1 million by issuing common stock. The firm's stock has a beta coefficient of 2, the risk free interest rate is 6 percent, the average rate of return on sto..
A state government is considering construction of a flood control dike having a life span of nine years. History indicates that a flood occurs every three years, on average, and causes $400,000 in damages on each occasion. If the state uses a MARR of..
A central bank would decrease the money supply to
A soft drink bottler collected monthly data on its sales of 12 ounce cans at different prices.
What are the financial markets and what purposes do they serve and what are financial intermediaries? How do these intermediaries function in the economy?
Determine whether a permanent increase in the size of the labor force and an improvement in technology, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply:
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Orange juice and apple juice are known to be perfect substitutes. Draw the appropriate price-consumption curve (for a variable price of orange juice) and income-consumption curve.
Identify a decision you made that had important unexpected consequences. Were the consequences good, bad, or both? Should you, and could you, have done anything differently in making the decision?
Does this make economic sense? Explain the rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves.
suppose that the reserve requirement is 10 and the balance sheet of the peoples national bank looks like the
johnny rockabilly has just finished recording his latest cd. his record companys marketing department determines that
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