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The manufacturer of bags of cement claims that they fill each bag with at least 50.1 pounds of cement. Assume that the standard deviation for the amount in each bag is 1.2 pounds. The decision rule is adopted to shut down the filling machine if the sample mean weight for a sample of 40 bags is below 49.7. What is the probability of a Type I error?
Derive the IS-LM model by considering the expectation into the model. You need to explain which factors affect each of the curve, and how the changes of these factors will shift the corresponding curve of the model. Suppose there is a expansionary mo..
A monopolist with a straight-line demand curve finds that it can sell two units at $12 each or 12 units at $2 each. Its marginal cost is constant at $3 per unit. Given the demand curve, draw the MR, and MC curves for this monopolist.
Estimate cost elasticity of demand for education at this university. Is cost elasticity of demand for university tuition elastic or inelastic according to answer in part (i) Why.
Predicting Suppose a nation has a great deal of human capital but few natural resources. In what kinds of products might the nation specialize?
There is a dollar on the table, which each player can try to grab. If only one player grabs, G, and the other does not, D, the player who grabs gets the dollar and his payoff is 1, while the other player's payoff is 0. If both players try to grab at ..
Looking at Latin America what is one country you would pressure and one you would avoid avoid as an healthcare executive looking to invest. Why?
Each employer faces competitive weekly wages of $1,600 for blacks and $2,400 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. What is the value of the marginal product of each black worker? What is the ..
Suppose you have a demand function given by: Q = 600 ? 0.5P. What is the price at which demand elasticity is Ed = ? 2? Hint: Instead of using price to find elasticity, you will now have to use elasticity to find price. You can use the point elasticit..
Suppose the government increases spending by $100 billion as a stimulus package. If the MPC is .6 the equilibrium income will: Assume that M is $500 billion and V is 5. If there is a 10 percent increase in V, then, according to the monetarist equatio..
Is death an enemy that should be fought off at all costs or is it a condition of life that is to be accepted? How does the way this question is answered affect the kind of healthcare system that we might embrace?
Use the computational method for elasticity described in the textbook. The demand curve for hotel rooms is Q = 1100 - 2P. If the price of a hotel room is $50, then the price elasticity of demand for hotel rooms is -0.1, -1.0, -10.0, 0?
The expected return on the market portfolio is 12%, and the relevant risk-free rate is 4.2%. What is the equity premium?
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