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As the manager of a ski resort, you want to increase the quantity of lift tickets sold by 10%. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should:
ecrease the price of a lift ticket by 5%.
decrease the price of a lift ticket by 2.5%.
increase the price of a lift ticket by 5%.
increase the price of a lift ticket by 2.5%.
Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend. If he belonged to the club, he could buy good 2..
The labor force is 100 million and the unemployment rate is 5 percent. If one million people quit looking for a job, what is this called and what is the new unemployment rate?
Which of the following are microeconomic problems? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Slow growth. The pricing policies of firms. Un..
What is out-of-sample prediction? Say you had 500 time-series observations and would like to determine how well your model is performing. How would you suggest obtaining an out-of-sample prediction?
A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. What is ..
What should be a firms goal when managing foreign exchange and associated risks? How might the firm reach these goals?
Assume that the distribution of starting salaries for newly qualified CA. Find out the probability that the std error.
The lag between the time the need for physical action is recognized and the time action is taken is referred to as the
Say you owe money to Big River Bank. Will you gain or lose from an unanticipated decrease in inflation? How could inflation make people turn to exchange by barter? What impact will free trade have on economic growth?
A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond’s face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..
Assume a colleague at the ERS estimated the following demand and supply equations for rice in the U.S. Calculate the equilibrium price and quantity of rice in the U.S. Calculate the equilibrium price and quantity for South Korea
Two firms both have the same constant marginal cost of $20 ≥ 0 and zero fixed cost; market price P = 140 − 2(q1 + q2). Both firms choose outputs to compete. Find the subgame perfect equilibrium outcome of the Stackelberg Duopoly game with Firm 1 movi..
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