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A mathematics test of 100 multiple- choice questions is to be given to all freshmen enetring a large university. Initially, in a pilot study the test was given to a random sample of 20 freshmen. Suppose that, for the population of all entering freshmen, the distribution of the number of correct answers would be normal with a variance of 250.
A. what is the probability that sample variance would be less than 100?
B. what is the probability that sample variance would be more than 500.
Explain the difference among the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier.
If capital gains tax is on nominal gains, Explain how much tax Sally pays on her gain. Calculate Kelly's capital gains if tax is on real gains.
Illustrate what does this theory predict about the term structure of interest rates in terms of how the yield of long term bonds are related to yields on a sequence of 1 year bonds.
Assume that over a range of prices, the price elasticity of demand varies, total revenue curve over these two ranges of the demand curve as price fall.
Why is an increase in number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
The same size of word for data and instructions, what is the size of each data register. Elucidate what is the size of the instruction register of the computer in the fist question.
Explain how would you expect each of the following events to affect the amount they save each month.
Draw and show with boxes and appropriate labeling who bears which portion of taxes. When does a price ceiling become binding and what does it create? Show in the diagram.
The central bank new head decides to increase the response of interest rates to inflation. Explain how does this change in policy alter the response of the economy to a supply shock.
If you are near graduation and plan to start your new job in 3 weeks, how does the Bureau of labor statistics classify you? Unemployed, employed or notin labor force.
Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run.
Describe some forms of government spending that represent consumption ad some forms that represent investment.
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