Which of the following is not an example of a two-part pricing scheme in the context of price discrimination? A) A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys. B) A firm, e.g., Sam’s Club or Costco, […]
Date: September 10th, 2020
Which of the following statements uses the economists’ definition of money? A) I plan to earn a lot of money over the summer. B) Betsy is rich—she has a lot of money. C) I hope that I have enough money to buy my lunch today. D) The job with New Company gave me the opportunity […]
Date: September 10th, 2020
Within the balance of payments, a current account deficit is offset by a: A) financial account deficit. B) financial account surplus. C) budget deficit. D) budget surplus. ANSWER B
Date: September 10th, 2020
When the supply of a good increases, the quantity supplied at each price is increasing as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
During a recession, output declines result in A) lower unemployment in the economy. B) higher unemployment in the economy. C) no impact on the unemployment in the economy. D) higher wages for the workers. ANSWER B
Date: September 10th, 2020
You are given the following information on the various sectors of the economy. Derive the aggregate expenditure function. C = 100 + 0.75Y I = 200 + 0.20Y G = 500 X = 250 M = 100 + 0.10Y ANSWER E = C + I + G + X – M E = (100 […]
Date: September 10th, 2020
If the possibility of a default increases because corporations begin to suffer losses, then the default risk on corporate bonds will ________, and the bonds’ returns will become ________ uncertain, meaning that the expected return on these bonds will decrease, everything else held constant. A) increase; less B) increase; more C) decrease; less D) decrease; […]
Date: September 10th, 2020
If a corporation begins to suffer large losses, then the default risk on the corporate bond will A) increase and the bond’s return will become more uncertain, meaning the expected return on the corporate bond will fall. B) increase and the bond’s return will become less uncertain, meaning the expected return on the corporate bond […]
Date: September 10th, 2020
Autonomous aggregate expenditures increases by $100 million, the marginal propensity to consume is 0.60, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.10. Calculate the change in income. What will be an ideal response? ANSWER Δ Autonomous Expenditures × 1/[1-(marginal propensity to consume + marginal propensity to invest – […]
Date: September 10th, 2020
The number of observations minus the number of estimated coefficients in a regression equation is called: A) degrees of freedom. B) variance. C) standard error fo the regression. D) none of the above. ANSWER A
Date: September 10th, 2020
