The power of the supply and demand model lies in its ability
A) to generally predict how price and quantity will change with supply and demand shocks.
B) to precisely predict the impact of government regulations on quantity and price.
C) to precisely determine the difference between price ceilings and price floors.
D) to generally predict how profit motive impacts the distribution of goods and services.
A
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In using regression analysis to estimate demand, which of the following problems is most directly a result of insufficient data?
A) the identification problem B) the problem of a low R2 C) the problem of high standard errors D) the problem of insignificant F-statistics
The data indicate that:
Answer the question on the basis of the following information for four highway programs of increasing scope. All figures are in millions of dollars.
A. there is no highway program that is economically justifiable on the basis of cost-benefit
analysis.
B. the marginal cost and marginal benefit of Program A are $2 and $9 respectively.
C. the marginal cost and marginal benefit of Program C are $12 and $21 respectively.
D. the marginal cost and marginal benefit of Program A cannot be determined.
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, how much economic profit does the firm make?
A) $0 B) $30 C) -$10 D) -$15
Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance is
a. $0 b. $90 c. $100 d. $900 e. $910