Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), how many lemons (low quality) will be supplied by sellers?
A. 10
B. 15
C. 20
D. 25
Answer: D
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As real GDP ________, aggregate planned expenditure ________
A) decreases; remains the same, because it is independent from real GDP B) increases; remains the same, because the increase in some components is precisely offset by the decrease in others C) increases; decreases D) decreases; increases E) increases; increases
The accompanying table gives the outcomes and probability distribution of the number of times a student checks her e-mail daily:
Probability of Checking E-Mail Outcome (number of e- mail checks) 0 1 2 3 4 5 6 Probability distribution 0.05 0.15 0.30 0.25 0.15 0.08 0.02 Sketch the probability distribution. Next, calculate the c.d.f. for the above table. What is the probability of her checking her e-mail between 1 and 3 times a day? Of checking it more than 3 times a day? What will be an ideal response?
If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to
a. charge a stand-by passenger no less than the full fare of $500. b. charge a stand-by passenger less than $100. c. charge a stand-by passenger more than $500. d. charge a stand-by passenger more than $100. e. fill the seats at the last minute for any price.
An increase in government expenditures is an example of expansionary fiscal policy.
Answer the following statement true (T) or false (F)