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Statistical prediction are generally based on a random sample selected from population. In your own opinion should people trust statistical prediction? Use an example to illustrate your opinion.
Can producer X signal (high) quality through its first month price? If X spends $A in advertising per pen and posts a first month price of $1.
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. Draw several indifference curves to illustrate Carl's preferences. Are Carl's preferences co..
What is the circular-flow model? There are two different loops in the circular-flow model. What is the difference between the two loops? Does the circular-flow model describe reality exactly? Describe one way that you or your family interacts in the ..
RAND study found that the income elasticity of demand for dental care is 0.15. Over the last one decade, income of the population has increased by 21%. Therefore, the income effect alone should a)Increase the demand for dental care by about 3% b)Incr..
Bel's Bakery (BB) is a family owned business. In 2010 it recorded a $3 million operating loss. Apparently, 50% of the losses stemmed from a failed acquisition. With short term interest rates at 5%, the manager (John) convinced the owners to expand it..
Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers
Suppose a worker receives an 8% increase in wages by having one more year of education in the first three years of schooling, 6% per year in the next five years, and 4% per year thereafter. How large will be the wage of a worker who has 10 years of e..
What is an absolute and comparative advantage? Give an example where you have an absolute, but not a comparative advantage with someone else.
Two bike riders, Floyd and Lance, are scheduled to race. Each wants to maximize his chance of winning the race; neither has any reservations about taking steroids if that will help win the race. If both take steroids, each has a 50 percent chance of ..
A researcher investigating public health issues goes into a junior high school class and asks the students if they have ever smoked a cigarette. The students are asked to respond orally in the presence of other students. What types of error might ent..
In order for third-degree discrimination to be possible, which of the following features is not required?
Suppose the cost function for your firm is: C = 10 +2Q + 5Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $35, What level of output should the firm produce to maximize profits o..
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