The number of standard deviations z that a particular value of r is from the mean ? can be computed as z = (r - ?)/ ?. Suppose that you work as a commission-only insurance agent earning $1,000 per week on average. Suppose that your standard deviation of weekly earnings is $500 . What is the probability that you earn zero in a week? Use the following brief z-table to help with this problem. Z
value Probability -3 .0013 -2 .0228 -1 .1587 0 .5000
a. 1.3% chance of earning nothing in a week
b. 2.28% chance of earning nothing in a week
c. 15.87% chance of earning nothing in a week
d. 50% chance of earning nothing in a week
e. none of the above
b
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The phrase "a weaker U.S. dollar" means that the dollar
a. has been depreciating b. has been appreciating c. is not in equilibrium on the foriegn exchange market d. is fluctuating greatly e. buys less than one unit of a foreign currency
Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed pursues restrictive monetary policy, ceteris paribus?
A. The equilibrium price level and output will both decrease. B. The equilibrium price level and output will both increase. C. The equilibrium price level will decrease but output will stay the same. D. The equilibrium output will decrease but the price level will stay the same.
An inside lag is:
A. a lag in implementing policy. B. the period of time it takes for policies to work. C. a policy aimed at increasing GDP. D. a policy aimed at reducing GDP.
A firm should consume physical capital until:
A) the value of the total product of physical capital equals the price of physical capital. B) the value of the average product of physical capital equals the price of physical capital. C) the value of the marginal product of physical capital equals the price of physical capital. D) the value of the marginal product of physical capital equals the value of the marginal product of labor.