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Income in a population are approximately normally distributed with mean $15,000 and standard deviation $5,000. The poverty level of income is $8,000.
a. What is the poverty rate?
b. What income is the 90th percentile?
If a firm in the industry wishes to increase total sales revenue (ignoring cost considerations), will it raise or lower its selling price? Why? What happens to the demand for beer if the price of soda falls by 2%? Explain your answer. What happens to..
Opponents of the minimum wage point out that the minimum wage:
If the firm finances debt externally but use retained earning to support equity financing, according to the target debt- equity ratio
The opportunity cost of a new public highway is the:
Explain why does price equal marginal revenue for the purely competitive firm. what is the relationship to the demand curve for the firm.
In the case of international trade, the risk of nonpayment is essentially eliminated with the use of a letter of credit issued through a trustworthy bank. Explain the difference between a trustworthy and a non-trustworthy bank. Hint: This question ca..
His classroom has 12 students, and the Sx=960, (Sx)^2=921,600, Sx^2=77,339. What is the mean for Smarty's Class?
An old wooden bridge over a bay is in danger of collapse. The highway department is considering two alternatives to alleviate the situation and provide for expected increases in future traffic. One plan is a conventional steel bridge, and the other i..
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman inde..
Mary’s utility function is U (b, c) = b + 100c ?c2, where b is the number of tomatoes in her garden and c is the number of onions. She has 500 square feet in her garden to allocate between tomatoes and onions. How many tomatoes and onions should Mary..
Describe the characteristics of Perfect Competition. Do you think it exists in the real world?
Think about our economy. Irrespective of economic conditions, we consume many goods and services in various quantities. There is a constant allocation and re-allocation of resources. How does this happen? What economic mechanism helps allocate resour..
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