Suppose this table shows your demand schedule for Buffalo chicken wings. (a) What is your total utility from four wings? (b) What is your marginal utility from the fifth wing? (c) If the price is $.25, how much will your consumer surplus be?
(a) $3.35
(b) $.50
(c) Total Utility ($4.50) - Price ($.25) × Quantity Demanded (7) = $4.50 - $1.75 = $2.75
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Which of the following is likely to lead to an increase in the gross domestic product of a country?
A) An increase in the tax rates in the country B) An increase in the interest rate in the country C) An increase in the capital stock of the economy D) An increase in the unemployment rate in the country
The price of good A goes up. As a result, the demand for good B shifts to the left. From this we can infer that:
A) good A is used to produce good B. B) good B is used to produce good A. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above
The main advantage of using multiple regression analysis over differences in means testing is that the regression technique
A) allows you to calculate p-values for the significance of your results. B) provides you with a measure of your goodness of fit. C) gives you quantitative estimates of a unit change in X. D) assumes that the error terms are generated from a normal distribution.
To the extent that current profits are directly related to future profits, a high price/earnings ratio would indicate that stocks are
a. inexpensive. b. expensive. c. going to increase in value in the future. d. most likely to fall in value if interest rates decline.