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The following data summarizes results from 1000 ?pre-employment drug screening tests. If one of the test subjects is randomly? selected, find the probability that the subject had a positive test result or a negative test result.
Positive Test Result Negative Test Result
Subject Uses Drugs 92 5
Subject Is not a Drug User 86 817
A banks loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50.
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland.
Can you give some examples? Do you agree or disagree with the key points that are being made in the chapters? Why?
What is the marginal propensity to? consume, the change in? saving, and the marginal propensity to? save?
Clearly explain how closely do government expenditures measure opportunity cost for the following:
When the marginal cost if something is free we will tend to consume it until our marginal utility equals zero. Why would we never go until our marginal utility?
What does this data suggest about financial market expectations of 1-year yields, 1 year from now? Explain.
For each set of individual demand functions, calculate the market demand function and draw both the individuals' and market demand on 1 graph.
Find out the firm's total fixed cost. Find out the firm's total variable cost. Find out the firm's short run marginal cost. Find out the firms average variable cost.
Suppose that you want to maximize the value of the function f(x) = x^3-6x^2+9x, subject to 0 less than or equal x less than or equal 5. Which value(s) of x satisfy the first-order condition for this maximization problem? Which value(s) of x are bound..
Suppose that doctors' visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors' visits and a "composite good" that costs $1 per unit. Draw a graph that illustrates the consumer's budget constrai..
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