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1. If O.P.E.C. increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is: a)Relatively elastic b)Relatively inelastic c)Perfectly elastic c) Perfectly inelastic
2. The Cross-price-elasticity of demand for coffee and tea is likely to be 1) Greater than zero 2) Less than zero 3)Zero 4) Infinity
3. If the income elasticity of a particular good is negative 0.2, it would be considered 1) a superior good 2) a normal good 3) an inferior good 4) an elastic good
4. If the price of an ipad is increased and total revenue received from the sale of this ipad increases, then the price elasticity of demand for the ipad is: a) elastic. b) inelastic. c) unitary. d) None of the above.
The manager of a corporate division faces possibility of an audit each year. She prefers to spend time preparing if she will be audited;
Fully discuss the method by which the Federal Reserve uses the banking system to create new money.
Identify each of the following events as: (use a, b, or c to answer the question) a) part of an expansionary fiscal policy b) part of a contractionary fiscal policy c) or not part of fiscal policy i. The corporate income tax rate is increased.
Competition seems to be so fierce among the giant retailers, after discounting and lower profit margins, how is profitability possible.
A corporation bought a machine for $100,000 four years ago. It was being depreciated on a straight line basis over five years. The company decides to replace this machine today.
What alternative policy would you propose to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Illustrate the effects on supply and demand from part 1.
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to .075. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP On saving
Take me out to the ballpark. It's nearly baseball time and baseball franchises are thinking about pricing their products. Assume a team sells three concessions: hotdogs, soda and nachos. For hotdogs, the average fan's MU for units 1, 2, and 3 is 1..
calculate the expected value of each investment. draw a bar chart for each investment. calculate the standard deviation of each project. Determine which of the two investments the investor should choose.
A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue.
Assume that there are two power generating plants that emit SO 2 (sulphur dioxide). In the absence of regulation they each emit 10 tons of pollution per month.
Explain how much is spent on bus rides. What is consumer surplus in dollars at this equilibrium. How much is the total benefit in dollars from bus rides.
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