Refer to the table below. If these are the only four price options for a pound of sugar, what is the expected value the price of a pound of sugar?
The above table provides the possible prices for a pound of sugar next year along with the associated probabilities (in percent).
A) $1.27
B) $1.25
C) $1.30
D) $1.32
A) $1.27
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Refer to Cournot Problem. Total industry output will be
Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P. a. 30 units. b. 45 units. c. 60 units. d. 90 units.
Which of the following is a primary implication of the accelerator theory of investment?
A) Net investment occurs when the desired and actual capital stocks are equal. B) In order for gross investment to remain constant, income must remain constant. C) Rising rather than high levels of output are necessary to maintain a high level of net investment. D) B and C are both correct.
The GNP and National Income (NI) figures are not equal because
a. business profits are included in GNP but not in NI. b. capital consumption allowance and productive resource income from the rest of the world are included in GNP but not in NI. c. all taxes must be deducted from GNP to arrive at NI. d. None of these.
A factor of production that has been produced for use in the production of other goods and services is:
A) labor. B) money. C) capital. D) natural resources.