If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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The ABC Corporation is contemplating purchasing a new computer system that would yield a before-tax return of 30 percent. The system would depreciate at a rate of 3 percent per year. The after-tax interest rate is 11 percent, the corporation tax rate is 35 percent, and a typical shareholder of ABC has a marginal tax rate of 30 percent. Assume for simplicity that there are no depreciation allowances or investment tax credits. Do you expect ABC to buy the new computer system?
What will be an ideal response?
Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:
A) simple regression analysis. B) correlation analysis C) multiple regression analysis. D) cluster analysis.
Refer to the figure above. The elasticity of supply for a product will be 2 when:
A. a 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied. B. a 1 percent decrease in price causes a 2 percent decrease in quantity supplied. C. a 2 percent decrease in price causes a 1 percent decrease in quantity supplied. D. a 2 percent decrease in price causes a 2 percent decrease in quantity supplied.
Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market, then the market demand for soda will be 90 cans per month when the price of a can of soda is ________.
A. $1.50 B. $0.75 C. $0.50 D. $1.25