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On October 19, 1987, the Dow Jones industrial average dropped about 500 points or a little more than 23%. What effect should a decline in stock values of this magnitude have had on aggregate demand according to the life-cycle theory of consumption?
Why is the price elasticity of demand a relative measure? That is, why is elasticity measured in percentage terms rather than absolute terms?
Estimate the regression coefficients using ordinary least squares also interpret them. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.
Do you think that the tit-for-tat strategy will be successful in maintaining cooperation in cases where the repeated prisoners dilemma is being played with a finite time horizon (i.e. players know when the game will end)? Explain. Imagine that you ar..
The _____ effect indicates that an individual’s income can buy more of all goods when the price of one good declines, everything else held constant.
Compare and contrast Keynes's theory of the speculative demand for money with Tobin's portfolio selection theory utilizing the expected utility hypothesis.
Describe the organizational structure of your selected organization. Evaluate and difference that structure with two different organizational structures.
Name the factors not counted in GDP that, in your view, most affect human welfare or happiness. How do you imagine that modifying to account for these factors would raise or lower current U.S. GDP relative to earlier times or other countries? (Be spe..
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of Y each year from ye..
What is economics and what are the basic economic questions? 'Market society answers these questions using price signals and free interaction in the market.' What are the social outcomes which market economy claims to provide? (briefly explain each o..
Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100. Discuss any recent purchases you hav..
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
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