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1. Which of the following would not tend to lower the price of VCR? a. Decreasing price of DVD players. b. Increasing price of video cassettes. c. Improvements in VCR production technology. d. Reduced price of raw material used in making VCR'S e. Increasing price of pay per view movies on cable TV. 2. At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 35 pounds of lamb. What is the arc elasticity of demand for lamb in this price range? a. 1.0 b. 2.5 c. 0.4 d. 3.0 e. none of the above 3.An unregulated negative production externality will cause a private market to A. Produce less than is socially optimal B. Produce more than is socially optimal C. Produce more than market equilibrium D. Produce less than market equilibrium E. Produce the amount that is socially optimal 4.On the foreign exchange market, an increase in a country's exchange rate A. Decrease the quantity demand of its currency B. Increase the quantity demand of its currency C. Has no effect on the quantity demand of its currency D. Decrease the quantity supplied of its currency E. has no effect of the quantity supplied of its currency
A public sector project being considered in a town and is expected to have the following cash flows. Annual benefits = $100,000 Expected annual dis-benefits (quantifiable) = $25,000 Annual cost= $50,000 If MARR is 3 percent, what is the modified B/C ..
Mention five ways you are affected on a daily basis by government intervention in the market. For what reason might government be involved? Is that reason justified?
First present a brief definition of macroeconomics and also briefly explain how it differs from microeconomics. Next, define the concept of an economic model and also differentiate between an exogenous variable as opposed to an endogenous variable in..
What would happen to the short-run equilibrium price and quantity of magnesium if a major (economically large) magnesium mine had to close due to environmental regulation? Assume the supply is elastic and demand is inelastic.
A bank currently has $70,000 in deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The needed reserve ratio is 20 percent. Answer these questions: What could keep the expansions from happening..
a firm must raise 10 million dollars in funding for a capital investment project. 2 million will be raised by issuing
What is an instrumental variable and Angrist and Krueger use quarter of birth as an instrument for education and explain why quarter of birth may affect education
Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Go..
. in the keynesian cross assume that the consumption function is given byc2000.75y-tplanned investment is 100
Why have rules for monetary policy based on money growth
Use demand and supply analysis to assist you, determine the effects on the exchange rate in British pound and the Japanese yen from
Identify the fallacy in the following discussion: "The effect of an excise tax on a commodity might seem at 1st sight to increase the value that buyer pay.
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