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The correlation between operating income rank and season win percentage rank in 2014 for MLB franchises was 0.0002. This suggests that there is no relation between team performance (quality) and profitability. Based on the theories discussed in class, is this lack of a relationship expected? Explain.
A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow. Should the firm make the investment? ..
Explain what a slope of .5 would mean if you were measuring the relationship between consumer spending and income, where the dependent variable is consumer spending and the independent variable is income? Explain what is meant when the slope of a lin..
If, in the money market, the quantity of money demanded exceeds the money supply, we would expect the interest rate to:
The more bowed out the Lorenz curve, the
Unemployment and inflation are called the "twin evils" of macroeconomics. The two measures are closely related - when unemployment rises, inflation tends to fall, and vice versa. One major theory about the relationship of unemployment and inflation i..
The last time the U.S. Post Office raised its prices for mail service critics of the rate increase argued that the Post Office's revenues would actually decline as a result of the price increase. the Post Office believes demand for mail service is el..
The market interest rate increases to 10%. IN the afternoon at what price would your bond sell in the secondary market.
When the central banks of various countries intervene in the foreign exchange market to maintain an exchange rate, this type of exchange rate system is called a ________ exchange rate system. Borrowing from abroad represents:
Suppose the demand for a good that monopolist produces is P = 20 - Q. The monopolist's total cost is TC = 2 + 6Q. What is the profit maximizing quantity and the price of the monopolist?
During hard times what should be done to encourage people to spend more so as to rise aggregate demand and invariably, create employment possibilities.
The long-run total cost function for a firm producing skateboards is: TC = q^2 - 45q^2 + 900q, where q is the number of skateboards per week. MC = 3q^2 - 90q + 900. Find the average cost function and find the output level that minimize the average to..
In the course of conducting a valid stop and frisk for weapons, if the police officer discovers evidence of another crime for which an arrest is proper, the officer:
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