Economists assume people behave
A) instinctively.
B) rationally.
C) irrationally.
D) greedily.
Answer: B
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The sample average is a random variable and
A) is a single number and as a result cannot have a distribution. B) has a probability distribution called its sampling distribution. C) has a probability distribution called the standard normal distribution. D) has a probability distribution that is the same as for the Y1,..., Yn i.i.d. variables.
Among the disadvantages of financing through stock is that
a. the issuance of bonds or commercial paper provides a predictable fixed cost for repayment in contrast to stocks, which represent a stake in the company's future profits b. the costs associated with issuing stocks and all ancillary activities can make issuing common stock more inexpensive than issuing preferred stocks or debt instruments c. all investors see issuing new stock as a negative sign that the company has to sell more of itself in order to survive d. all of these e. none of these
Monetary policy
a. can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented. b. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented. c. cannot be implemented quickly, but once implemented most of its impact on aggregate demand occurs very soon afterward. d. cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented.
If total consumer expenditures (in dollars) for bus transportation were to increase when the price of bus transportation was raised, the demand for bus transportation probably
A) had decreased. B) had increased. C) violated the law of demand. D) was elastic. E) was inelastic.