The difference between sensitivity analysis and scenario analysis is
A) sensitivity analysis is a method for evaluating risk while scenario analysis is not.
B) sensitivity analysis is based on regression analysis while scenario analysis is not.
C) sensitivity analysis examines the impact on the overall results of a change in one variable while scenario analysis examines the impacts on overall results of changes in several variables at the same time.
D) None of the above
C
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Suppose the market clearing price for apples falls from $3.00 to $2.00 per pound, and the overall market clearing output increases from 1 million to 2 million pounds. How can we explain the fall in price and increase in market output?
A) Supply decreased and demand remained unchanged. B) Supply remained unchanged and demand decreased. C) Demand increased and supply remained unchanged. D) Demand remained unchanged and supply increased.
Research shows programs like unemployment insurance, disability or health insurance, and job training can be effective in fighting:
A. neither transient nor chronic poverty. B. chronic poverty, but not transient poverty. C. both transient and chronic poverty. D. transient poverty, but not chronic poverty.
Given the price of a good or service, what determines how much a person is willing to pay for that good or service?
A) marginal utility B) total utility C) the substitution effect D) average utility
It is more difficult to analyze a monopolistically competitive market than a perfectly competitive market because in a monopolistically competitive market:
A) products are differentiated, which results in nonprice competition. B) a normal profit in the long run is normal. C) there is only one firm. D) firms are characterized by mutual interdependence.