Please select as true, false or uncertain for the following and explain your answer 1.The economics...

Please select as true, false or uncertain for the following and explain your answer

1.The economics point of view is not valid for making decisions related to social undertakings, such as soup kitchens, or aid to poor families.

2. Indifference curves never cross. If they were to cross, that would mean that preferences are inconsistent.

3. If two products are perfect substitutes - that is, if people are different between them - then the elasticity of demand will be exactly equal to -1.

4.. In an indifference curve analysis, it is impossible for the quantity demanded of one of the two goods to be equal to zero.

5 Assume that in a business school, a particular academic center brings in $800,000 in revenues per year. Total variable costs, comprised of salaries, benefits, and space rental for conferences, add up to $650,000 per year. Overhead allocated to this particular center is equal to $300,000. The Dean has decided to close down this center, because "it loses money; it loses $150,000." What do you think about this decision?

6. If the price elasticity of demand is higher in one market than in the other, the

optimal pricing strategy is to charge a higher price in the market with the higher

elasticity of demand than in the market with the lower elasticity.

7. Economic theory suggests that there will always be illegal immigration into

countries that have much higher salaries than neighboring countries.

8 Dynamic pricing is an economist dream come true.

9. Dynamic pricing is very unfair, since poor people will not be able to afford the

good or service in question during peak demand periods.

10. Income elasticities of demand can never be equal to zero

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Answer True, False or Uncertain. Brieáy explain your answer Please explain 1. A permanent increase in...

Answer True, False or Uncertain. Brieáy explain your answer Please explain 1. A permanent increase in money supply cannot affect any variable in the OLG model of money. 2. In the OLG model of money, Fiat money does not pay interest, so money's rate of return is 1. 3. Suppose that the government finances its expenditure through seigniorage revenue. There exists an upper limit on the amount of the seigniorage revenue that can be generated. 4. The original Phillips curve...

Label the following as true, false, or uncertain and explain your choice. (Uncertain means that it...

Label the following as true, false, or uncertain and explain your choice. (Uncertain means that it can be either true or false depending upon the circumstances.) (a) All members of a resource cartel share a common objective, namely increase prices as much and as soon as possible. (b) By holding prices lower than they would otherwise be, placing a price control on a depletable resource increases both the speed with which the resource is extracted over time and the cumulative...

Indicate whether each of the following statements is true, false, or uncertain, and explain your answer...

Indicate whether each of the following statements is true, false, or uncertain, and explain your answer in great detail. If a word or phrase is italicized and bolded your answer must include a concise definition of the word or phrase. You must include graphs when necessary. How does an economy get out of a recessionary gap? (use a graph.)

Indicate whether each of the following statements are true, false, or uncertain and explain your answer....

Indicate whether each of the following statements are true, false, or uncertain and explain your answer. a. Consider two zero-coupon bonds, one with a short maturity, and one with a longer maturity. The value of the long-maturity bond is more sensitive (in % terms) to changes in interest rates than the short-maturity bond' s value. b. If the Internal Rate of Return (IRR) of an investment project is above its cost of capital, then the NPV of the project (calculated...

State whether the following statement is True, False, or Uncertain. Be sure to explain your answer....

State whether the following statement is True, False, or Uncertain. Be sure to explain your answer. The marginal propensity to consume from a permanent parallel upward shift in the production function is smaller than the marginal propensity to consume from a temporary parallel upward shift in the production function.

True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain...

True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A6-5. Suppose a $1000 bond pays annual “coupon interest” equal to 10% and matures in two years. If the yield on bonds with similar risk characteristics is 3%, the price of this bond today is greater than $1000. A6-6. Suppose the Bank of...

True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain...

True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A6-1. An economy with a recessionary gap will never return to long run equilibrium without policy intervention. A6-2. In a closed economy, investment will equal the sum of private saving and government saving. A6-3. An increase in private saving for a closed economy...

True/False/Uncertain (30 marks) Answer each of the following statements True/False/Uncertain. Give a full explanation of your...

True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) Average variable cost is equal to average total cost in the long-run. B) Firms in a perfectly competitive market can earn positive profits in the short and long-run. C) A monopolist conducting perfect price discrimination does not maximize total surplus.

1. True/False/Uncertain (30 marks) Answer each of the following statements True/False/Uncertain. Give a full explanation of...

1. True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) All Nash Equilibrium are Pareto efficient. B) If firms could collude in an oligopoly game, they would set either output or price at the monopoly level. C) In order for cheap talk to work in an infinite game, it must be a Nash Equilibrium in every static version of the...

Answer whether or note the following statements are true, false or uncertain. Justify your answers. 1....

Answer whether or note the following statements are true, false or uncertain. Justify your answers. 1. The Lucas critique argues that the simple Keynesian multiplier model cannot be used to evaluate the potential impact of policy because the model’s assumption of a representative agent is too simple to capture the real world. 2. Ricardian Equivalence implies that the government’s fiscal policy does not matter.

Subjects