Consider the Battle of the Sexes game: Jim- wrestling Jim – opera Joan – wrestling 2, 1 0, 0 Joan – opera 0, 0 1, 2 Suppose both players use mixed strategies for this game. Jim chooses wrestling with probability 0.9, and Joan chooses wrestling with probability 0.5. What are the expected payoffs for the […]
Date: September 9th, 2020
Suppose we believe the income response for hamburger consumption is positive (normal) at low income levels but becomes negative (inferior) at high income levels. Is the log-linear demand function a good choice for this particular product? A) Yes, the log-linear model has an income elasticity that can be positive or negative. B) No, the log-linear […]
Date: September 9th, 2020
Suppose a plant manager ignores some implicit marginal costs of production so that the perceived MC curve is below the actual MC curve. What is the likely outcome from this error? A) Firm produces less than optimal quantity and earns lower profits B) Firm produces less than optimal quantity and earns higher profits C) Firm […]
Date: September 9th, 2020
An L-shaped isoquant A) is impossible. B) would indicate that the firm could switch from one output to another costlessly. C) would indicate that the firm could not switch from one output to another. D) would indicate that capital and labor cannot be substituted for each other in production. E) would indicate that capital and […]
Date: September 9th, 2020
What is the approximate price of a $10,000 coupon bond that pays $1,000 in one year and $1,000 in two years at maturity? The effective yield on the bond is 6 percent. A) $10,000 B) $10,730 C) $10,900 D) $12,000 ANSWER B
Date: September 9th, 2020
A firm’s marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor, but does not want its output quantity to change, the firm should A) use five fewer units of capital. B) use 0.8 fewer units of capital. C) use 1.25 fewer units […]
Date: September 9th, 2020
The poverty estimates include an imputation for the homeless. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Suppose your firm has a U-shaped average variable cost curve and operates in a perfectly competitive market. If you produce where the product price (marginal revenue) equals average variable cost (on the upward sloping portion of the AVC curve), then your output will: A) exceed the profit-maximizing level of output. B) be smaller than the […]
Date: September 9th, 2020
Many whites regard ghetto poverty as a symptom of aberrant cultural values and inherent racial deficiencies. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Welfare recipients differ markedly from other Americans with respect to general personality characteristics, work ethics, and basic life goals. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
