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1. If the price elasticity of demand is equal to 1, then demand is unit elastic. T/ F
2. If the income elasticity of demand for a good is negative, then the good must be an inferior good. T/ F
3. Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good changes. T/ F
Identify the four major tools of monetary policy. Describe how a change in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contraction monetary policies.
Explain your thoughts on how the mechanistic organization mindset became so ingrained in the business world.
A couple wants to save for their daughter’s college expense. The daughter will enter college 10 years from now and she will need $45,000, $46,000, $47,000 and $48,000 in actual dollars for 4 school years. What is the equal amount, in actual dollars, ..
Analyze a recently published article which deals with globalization or trade policy. Pay special attention to the winners and losers of this event. What role did/do special interests play in the implementation of this policy?
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to ex..
The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
As a result of the weakened dollar from the financial crisis,
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis.How much profit will they make at that quantity? Why is this firm a natural monopolist?
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 92 - 2PX. Suppose the government imposes a price floor of $40, and agrees to purchase any and all units consumers do not buy at the floor price of $40 per unit. Determine..
Suppose that the government decides to impose a tax on the producers of potato chips. How will the tax affect the potato chips prices and the quantities sold? Explain using demand and supply curves.
IBM employs a network of expert analytics consultants for various projects. To help it determine how to distribute its bonuses, IBM wants to form groups of employees with similar performance according to key performance metrics.
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