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When Sprint announced a price discount plan designed to induce small firms to use its services, the price of its slick immediately declined. Why do you think the stock market reacted negatively to Sprint's plan to attract new customers?
Exports are largely responsible for China’s recent rapid economic growth. The country, capitalizing on its cheap labor force, has focused on converting raw materials into products that are exported to developed countries like the United States. Are t..
Quantity of pizzas demanded soared following week from 1 pie an hour to 100 pies an hour. What was price elasticity of demand for Domino's pizza.
A competitive industry produces a unit of sulphur dioxide with every unit of its output. The private marginal cost (PMC) in the industry is 2+(Q/2) when Q is the number of units of output. The social marginal benefit (SMB) of the industry's output is..
Suppose that a store’s management is considering a plan in which customers who donate blood get a $20 gift card. If both store REVENUES and blood donations (i.e., number of pints donated) rise with this plan, which of the following is true? Be sure t..
Calculate the marginal cost function. What is Chill man's profit-maximizing cost as well as output combination.
Which of the following is the BEST example of a pure public good?
All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 3? Suppose now that economists expect the velocity of money to increase by 50% as a result ..
A sum of $16,000per year will be received uniformly over a five-year period beginning two years from today. What is the present value of this deferred- funds flow if interested is compounded continuously at a normal rate of 9%.
Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and..
What is the CPI? Which do you think has a greater effect on the consumer price index: a 10 percent increase in the price of chicken, or a 10 percent increase in the price of caviar? Why?
An investor is considering buying a 20-year corporate bond. The bond has a face value of $1,000 and pays 6% interest per year in two semi annual payments. To receive 8% interest, compounded semi annually, how much should be paid for the bond?
Twenty farmers, in a society with 100 people, would collectively gain $100,000 from a farm subsidy. All 100 people would pay the $300,000 cost of the subsidy program. Are the farmers willing to lobby the government in support of the subsidy? Why or w..
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