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1. If O.P.E.C. increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is: a)Relatively elastic b)Relatively inelastic c)Perfectly elastic c) Perfectly inelastic
2. The Cross-price-elasticity of demand for coffee and tea is likely to be 1) Greater than zero 2) Less than zero 3)Zero 4) Infinity
3. If the income elasticity of a particular good is negative 0.2, it would be considered 1) a superior good 2) a normal good 3) an inferior good 4) an elastic good
4. If the price of an ipad is increased and total revenue received from the sale of this ipad increases, then the price elasticity of demand for the ipad is: a) elastic. b) inelastic. c) unitary. d) None of the above.
Suppose in a closed economy, government spending is $60, business investments are $120 and consumers' spending is given as C = 120 + 0.85Y. What is the equilibrium level of output?
A researcher is interested in the size of the current balance of credit card holders. To estimate this, he obtains the size of the current balance of a random sample of 25 credit card holders. A 90% confidence interval for the mean current balance..
Consists of performing application oriented exercises wherein specific economic principles learned in this course are put to practical use.
If this year's profit (end of year 1) is expected to be $6,000 and the profit trend continues (i.e. the profit at the end of year 2 is $7,200 and so on) for four years, find the present worth of the profit at an interest rate of 9% per year.
Experiment with the number of steps for binomial tree model until your numerical result stabilizes to within one cent of the result given through the Black-Scholes formula.
Elucidate what is the effect of an increase in the quantity of money. What is the difference between real variables and nominal variables.
Assume that Microsoft is considering a merger. The possible merger faces some threats and that the industry desides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expa..
Illustrate what was the effect of these rate reductions on revenue flow into the federal treasury. What impact upon our economy from these individual tax rate reductions.
Assuming no change in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A Does the new data reflect an increase in aggregate supply or does it indicate a decrease..
How the Unemployment Rate Affects the U.S. Economy and how the Unemployment Rate Affects
What is the difference between gross private domestic in- vestment and net private domestic investment If you were to determine net domestic product (NDP) through the ex- penditures approach, which of these two measures of investment spending woul..
What is the relationship among Japan and Korea's unemployment. What Trends do you see in the data set.
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