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You have developed a paper-pencil survey that you claim measures "love of pets." To establish its validity, you do the following: correlate scores on it with the number of pets a person has; correlate scores on it with how much money the owner spends on his/her pet; and you give it to a group of people who own pets and a group who do not, and compare their average scores on the survey. What type of validity are you trying to establish?
Which one is a right answer to the question: content, predictive-criterion related, concurrent criterion-related or construct validity?
Analyse the causes and consequences of near zero interest rates in the USA since 2008. In theory, what impact should this policy have had on the value of the US dollar? Explain why this hasn't necessarily been the case over the last seven years.
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Use a diagram to show how the existence of Santa Claus affects the supply of toys, the price of toys, t..
What are some real or potential effects of public debt on income distribution, economic incentives, fiscal policy, and private investment?
The U.S. Department of Agriculture (USDA) administers the price floor for butter, which the 2008 Farm Bill set at $1.05 per pound. At that price, according to data from the USDA, the quantity of butter supplied in 2010 was 1.7 billion pounds, and the..
Suppose the market equilibrium price for immunizations is $40 and the volume is 25,000. What sort of shift in supply or demand would reduce both prices and sales volume? What might cause such a shift?
What are some contemporary technology issues? How do we learn to accept the social responsibilities of educated citizens in a global technological society?
Compare the effects of these two policies in terms of their implications for the current account.
Sylvia lives in California and qualifies for the CalWorks program (California’s version of TANF). CalWorks participants can earn $225 per month without having their benefits reduced. Beyond $225, benefits are reduced by 50 cents for every dollar of e..
Monopoly Price is the same level where MR meets MC. Monopoly Demand is the Average Revenue. Airline Ticket is the Peak-Load Pricing. Electricity is the Intertemporal Pricing. Amusement Park fees are the Two-Parts Tariffs.
All else equal, in an open economy, how would an increase in the marginal propensity to import (MPI) affect the government purchases multiplier?
Consider a perfectly competitive market described by the demand function P = 60 - 0.3Q and supply function P = 10 + 0.2Q. Using the standard formula (versus the mid-point formula) for calculating elasticities, it may be concluded that at the equilibr..
Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sales by lowering the price to $12. What minimum increase in sales would be n..
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