advertising of IPAD. Answer: A 4) Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive‚ then: A. goods y and x are complements. B. goods y and x are inferior goods. C. goods y and x are normal goods. D. goods y and x are substitutes. Answer: D 5) Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. The equilibrium quantity is: A. 92. B. 81. C. 45. D. 62. Answer: D 6) Suppose there is a simultaneous increase in
Premium Supply and demand Marginal cost Cost
In the story Hunger as Ideology by Susan Bordo women are portrayed as passive and inferior to men. Bordo looks into advertisements to prove her point about how visible it is that women are how they are suppose to be dainty and quaint. In the movie "The Thomas Crown Affair" it is totally opposite; the woman in this story is independent‚ strong‚ and self-reliant. She is able to outsmart him and prove to him that she is able to survive without any help. The modern women has transformed and broken the
Premium Woman Physical attractiveness Evidence
Chapter 15 Financial Planning and Forecasting Multiple Choice Questions 1. Which of the following is a set of financial statements depicting an operating division of a firm’s expected financial situation in the foreseeable future under the most reasonable set of assumptions concerning relevant factors? A. base case projections B. deseaonalized financial statements C. naïve financial statements D. pro forma financial statements 2. The set of assumptions underlying the firm’s financial plan
Premium Balance sheet Generally Accepted Accounting Principles Liability
million. These notes carried an interest rate of 10 percent. Depreciation was $100‚000. Abel’s tax rate in 2004 was 35%. What was Abel’s net income? [iii]. In the above question‚ what was Abel’s operating cash flow? For the next 7 questions suppose the following data for MBM Co. for 2007 holds: |Sales |45000 | |COGS |25000 | |Depreciation
Premium Cash flow Net present value Stock
of capital is 20%. The risk-free interest rate is 10%. a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment‚ the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way—that is‚ what is the initial market value of the unlevered equity? c. a. Suppose the initial $100‚000 is instead raised by borrowing at the risk-free interest rate. What are the
Premium Stock Stock market Corporate finance
ρ(X‚ Y ) from the distribution below Y =1 X = 5000 X = 10‚ 000 X = 15‚ 000 0 1/8 1/3 Y =0 1/4 1/8 1/6 (1) 2. Suppose E[X] = 1 and E[Y ] = 2 and suppose X and Y are independent. Evaluate: a) E[2X + 1] b) E[X + Y ] c) E[X − 2Y ] d) E[XY + 1] 3. Suppose V ar[X] = 2‚ V ar[Y ] = 1‚ Cov[X‚ Y ] = 0. Evaluate: a) V ar[X + 2Y ] b) V ar[X − Y ] c) Cov[2X − Y‚ X − 1] n i=1 [Xi 4. Suppose c) n i=1 Xi = 2 and + 2] n i=1 Yi = 3. Evaluate: a) n i=1 [Xi +
Premium Economics Standard deviation Supply and demand
answer. Problem # 2 Suppose the market for running shoes is in equilibrium. Then the supply of running shoes decreases. What happens to the price and quantity of running shoes? What factors might account for the decrease in supply? Problem # 3 The table above gives the demand and supply schedules for CDs. a. According to the table‚ what is the equilibrium price? b. Suppose the government imposes a price floor of $16 for a CD. What is the result? c. Suppose the government imposes a
Premium Inflation Supply and demand Unemployment
relative to foreign interest rates. The two conditions combined result in the _________ Effect. a) Fisher b) Herstatt c) Unbiased forward rate d) International Fisher Ans: d Section: The fisher effect Level: Easy MEDIUM (applied) 4.5 Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%‚ respectively‚ over the next several years. If the current spot rate for the Mexican peso is $.005‚ then the best estimate of the peso’s spot value in 3 years is a) $.00276
Premium Inflation United States dollar Forward contract
relative to foreign interest rates. The two conditions combined result in the _________ Effect. a) Fisher b) Herstatt c) Unbiased forward rate d) International Fisher Ans: d Section: The fisher effect Level: Easy MEDIUM (applied) 4.5 Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%‚ respectively‚ over the next several years. If the current spot rate for the Mexican peso is $.005‚ then the best estimate of the peso’s spot value in 3 years is a) $.00276
Premium Inflation
a linear probability model (LPM)? What is the meaning of β1? b) Suppose that MLR.1-4 hold for the model when all variables are correctly measured. Further suppose that respond is measured with error: respond = respond* + e (i.e.‚ observed = truth + error). Would the OLS estimators of ’s still be unbiased and consistent and why? c) Suppose that MLR.1-4 hold for the model when all variables are correctly measured. Further suppose that one regressor‚ mailsyear‚ is measured with an additive error
Premium Regression analysis Estimator Econometrics