An imperfectly competitive firm has the following demand curve: Q = 100 - 2P. What is marginal revenue equal to when P = 30?
What will be an ideal response?
Q = 40, so MR = 30 - (40/2 ) = 10.
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When the reserve requirement is increased, ________.
A. the excess reserves of member banks are increased B. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves C. required reserves are changed into excess reserves D. the excess reserves of member banks are reduced
For an economy in equilibrium, the Keynesian model suggests that the plot of aggregate expenditure against RGDP: a. is a vertical line
b. has slope lesser than 1. c. has slope equal to 1. d. is a horizontal line.
Which of the following examples best illustrates a negative network externality?
a. Jamal goes to the theme park on weekdays to avoid the crowds. b. Jamal buys his plane ticket on sale to avoid an expected rate increase. c. Jamal goes to a movie instead of a concert because concert ticket prices increase. d. Jamal buys a season pass to the theme park to save money.
Consider the following regression equation: 
. Which of the following indicates a functional form misspecification in E(y|x)?
A. Ordinary Least Squares estimates equal Weighted Least Squares estimates. B. Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude. C. Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude. D. Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.