What is the "midpoint formula" and why is it used?
What will be an ideal response?
The midpoint formula is a convention of calculating elasticity percentages using the values halfway between the initial and new price and quantity demanded values. It is used so an elasticity calculation will not depend on the direction of the change in quantity demanded due to a change in price.
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Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should:
a. d or e. b. immediately stop production. c. completely ignore your manager. d. ask the manager about the marginal cost. e. ask the manager about the average total cost.
The phase of the business cycle that follows a recession is known as the:
a. peak. b. recession. c. recovery. d. trough.
While equity funds are mostly made up of short-term U.S. government securities, money market funds are made up of bonds
a. True b. False Indicate whether the statement is true or false