Refer to Figure 9.8. In order to eliminate international trade in sugar altogether, this country would have to impose a quota of A) 0 tons. B) 200 tons. C) 300 tons. D) 350 tons. E) 500 tons. ANSWER A
Date: September 9th, 2020
Behavioral economists argue that asset price bubbles and other examples of herd behavior may be due to biases resulting from the law of small numbers. In particular, the investors may observe unusually ________ returns for some asset and use this limited information to ________ the probability that returns will be high in the future. A) […]
Date: September 9th, 2020
A simple linear demand function may be stated as Q = a – bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of […]
Date: September 9th, 2020
The demand for sirloin steak is probably more elastic than the demand for all meat because A) steak is very expensive. B) people are worried about cholesterol. C) cattle raising is not very profitable. D) there are more substitutes for sirloin steak than for all meats. ANSWER D
Date: September 9th, 2020
In general, the current stock of pollutants (St) may be modeled as St = Et + (1 – d)St-1 where d is the ________ and Et is the ________. A) social discount rate, previous stock level B) social discount rate, current emissions C) stock dissipation rate, previous stock level D) stock dissipation rate, current emissions […]
Date: September 9th, 2020
Suppose the government does not provide an incentive payment to producers under a production quota policy, and the amount that may be produced and sold by firms is limited by law in order to raise the market price to the support price. Do producers still gain surplus value under this version of the production quota […]
Date: September 9th, 2020
When a good has a unitary price elasticity, consumer expenditures for the good A) change in the same direction as a price change. B) change in the opposite direction to a price change, but not necessarily by the same percentage as the price change. C) do not change when the price of the good decreases. […]
Date: September 9th, 2020
For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller. Industries that face demand behavior of this type are known as: A) natural monopolies. B) cartels. C) cyclical industries. D) constant-cost industries. […]
Date: September 9th, 2020
The Happy Mountain Brewing Company sells ground organic coffee in one pound containers through several grocery chains in the US. The firm has two divisions: the roasting division buys raw organic coffee beans and then blends, roasts, and grinds the beans, and the merchandising division packages and distributes the ground coffee. a. Please draw a […]
Date: September 9th, 2020
Some recent developments in financial research focus on ways to make portfolio allocations and other investment decisions in ways that largely ignore the possible gains but protect against large losses. These tools are designed to reflect ________ behavior among investors. A) risk neutral B) substitution C) loss aversion D) anchoring ANSWER C
Date: September 9th, 2020
