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Which of the following statements are positive and which are normative? a) Jim gives too many tests b) The average on Jim's test is 77. c) Jim needs a haircut. d) Government is too large. e) Legalizing marijuana will increase the demand for marijuana.
Suppose that you were an industry analyst trying to determine if the leading firms in the automobile manufacturing industry are playing a tit-for-tat pricing game. What real world data would you want to examine? What would you consider to be evidence..
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Determine the range of annual volume for which each of the alter..
In the 1960’s a group medical practice (Health Insurance Plan or HIP) undertook a large scale randomized trial to evaluate the effectiveness of mammography. The researchers followed the subjects for five years and recorded the number of deaths due to..
Compute the year-to-year growth rates of real GDP. Can you identify the recession that occurred during this period?
The Federal Reserve System is structured in such a way as to insulate monetary policy from the political pressures characteristic of the rest of our political system of representative democracy.” Do you agree or disagree with this quote? Explain your..
When comparing perfect competition and monopoly, a major assumption made is that
Consider a strategic setting in which two geographically distinct firms (players 1 and 2) compete by setting prices. Suppose that consumers are uniformly distributed across the interval [0,1], and each will buy either one unit or nothing. Firm 1 is l..
What is the change in checkable deposits?
Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.
Look up Humana Energy (HUM) and find the current bid-ask spread as well as the order size for the bid and ask, during the trading day (Yahoo Finance). Discuss the consequence of these numbers for the risk of the firm.
What level of money supply should the central bank set next year if it wants an inflation rate of 4%? What growth rate should the central bank set for the money supply if they want inflation to be steady at 2% per year?
Monopolistic competition means: Similarily, the movie You’ve Got Mail features a successful small bookstore competing with a new book superstore around the block. The big superstore offers large discounts, while the small independent bookstore has be..
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