Hostess Brands is selling off its assets after liquidation. A potential buyer for the Twinkies brand has found that the total revenue will be $3 billion a year if the brand is managed well and $1 billion a year if the brand is managed poorly
There is .6 (or 60 percent) chance of managing the brand well and a .4 (or 40 percent) chance of managing the brand poorly. What is the expected total revenue? A) $0.4 billion
B) $1.2 billion
C) $1.8 billion
D) $2.2 billion
D
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GreenTree Corporation sells live Christmas trees. It observes that when it increases the price of Christmas trees by 10 percent, revenue rises by 25 percent. The demand for Christmas trees is:
A. perfectly elastic. B. elastic. C. inelastic. D. unit elastic.
A demand curve:
A. has a positive slope. B. illustrates the negative relationship between price and quantity demanded. C. illustrates the positive relationship between price and quantity demanded. D. is based on the assumption of a stable supply curve.
A government-set price floor on a product:
A. Does not interfere with the rationing function of price in a market system B. Will drive resources away from the production of the product C. Will attract more resources towards the production of the product D. Is intended to benefit the buyers of the product
For this question, assume that the there exists uncertainty about the impact of monetary policy on the macroeconomy. Given this information, it would be most appropriate for the central bank to increase money growth
A) at the midpoint of a recession. B) by more than the increase that will yield the desired response. C) by less than the increase that will yield the desired response. D) by an amount equal to the increase that will yield the desired response. E) only after it is certain that the economy has entered a recession.