Compare/contrast the Nasdaq Composite Index with the Dow Jones Industrial Average.
What will be an ideal response?
The Nasdaq is a value-weighted index, where the DJIA is a price-weighted index. Also, the Nasdaq is made up of many smaller, newer companies, recently dominated by technology and internet companies, where the DJIA includes 30 of the largest firms in the U.S.
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Assume General Motors has decided to build an assembly plant in St. Louis. The plant will employ 1,000 full-time workers at an annual wage of $40,000 each. If the marginal propensity to consume in St. Louis is 2/3, what change in income will result from operation of the plant for one year?
A. $26.7 million. B. $40 million. C. $80 million. D. $120 million.
Demand determines price entirely when
A. demand is perfectly inelastic. B. demand is downward sloping. C. supply is perfectly elastic. D. supply is perfectly inelastic.
Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, then economic profit will be
A. $70. B. $90. C. $80. D. $60.
Suppose the target exchange rate set by the Fed is 100 guilders per dollar. If the demand for dollars temporarily decreases, to maintain the target exchange rate, the Fed can
A) sell dollars. B) buy dollars. C) increase U.S. exports. D) increase U.S. imports.