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Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states, regulators have ordered the salon owners to stop, claiming that this service constitutes the practice of illegal dentistry. What group would you expect to be behind the state's efforts to ban salons from providing teeth whitening services? Why?
a. If the Fed requires banks to hold 5 percent of deposits as reserves, how much in excess of reserves does First National now hold b. Assume that all other banks only the required amount, by how much would the economy's money supply increase
The elasticity of ticket sales with respect to the size of the local population is estimated to be about 0.7. Briefly explain what this number means. If the local population increases from 60,000 to 61,500,
Answer the following questions using the above data. Compute autonomous aggregate demand and compute the short-run output.
compute the standard error of estimate and the standard error of the coefficient for the following data set: X = 95, 85, 80, 70, 60 and Y = 85, 95, 70, 65, 70. Lastly, set up and perform the hypothesis test to determine if a student's aptitude sco..
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. The demand elasticity of a widget at the monopoly price and quantity is what
People hold $400 million of bank deposits but no currency. Banks have made $380 million dollars of loans and only hold enough reserves to satisfy reserve requirements. Because of uncertainty, banks choose to hold $10 million more in reserves.
Suppose that worker skills can be measured in efficiency units, and that efficiency units are distributed in the population such that worker 1 has 1 efficiency unit, worker 2 has 2 efficiency units, etc.
Dependent Variable: Q R-Square F-Ratio P-Value on F Observations: 20 0.8435 28.75 0.001 Parameter Standard Variable Estimate Error T-Ratio P-Value Intercept 425120.0 220300.0 1.93 0.0716 P -37260.6 12587 -22.96 0.0093 M 1.49 0.3651 4.08 0.0009 PR ..
The value of a successful project is $420,000; the probabilities of success are 1/2 with good supervision and 1/4 without. The manager is risk-neutral, not risk-averse as in the text, so his expected utility equals his expected income minus his di..
Multicollinearity refers to existence of correlation among the independent variables in a multiple regression model. Explain how multicollinearity can impact your regression analysis.
During 2003, the economy began to stop worrying that inflation was a problem. Instead, the worry was about deflation, a decline in the price level. Assume that the fed decided to hold money supply constant. What impact will deflation have on inter..
What is the relationship between the marginal cost and the average variable and average total costs You may fill in all the appropriate numbers and draw a graph with MC, TVC, AVC, TC, ATC, TFC, and AFC
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