If demand is given by Q = Ap-b where A and b are positive constants, the absolute value of price elasticity of demand
A) = b.
B) = A.
C) = A/b.
D) depends on the price.
A
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Refer to the figure above. If the monopolist faces a constant marginal cost of $10, at what price should it sell its output?
A) $2 B) $10 C) $12 D) $14
The Beck Depression Inventory-II has a reliability coefficient (coefficient alpha) of .92. Using classical test theory, interpret the meaning of this reliability coefficient.
a. The amount of error variance to observed variance is 92%
b. The amount of true variance to observed variance is 92%
c. The instrument has good enough reliability
d. The instrument's validity coefficient would be .922 (or .92 squared)
Suppose this is the base year and there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If the Price of Good A is $5 and the Price of Good B is $10, the price index
A. is 30. B. is 20. C. is 50. D. is 100.
Budget surpluses can stimulate capital formation and spur economic growth.
Answer the following statement true (T) or false (F)