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If you have a price change of 20% and a quantity change of 20%, this is:

A good’s supply is inelastic if the supply is NOT very sensitive to price changes.

If you have a price change of 50% and quantity change of 10%, is this unitary elastic, elastic or inelastic. 

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm’s accounting profit?

A monopolistically competitive uses branding and marketing to create pricing power. 

. Would you expect marginal utility to rise or fall with additional consumption of a good?

An entrepreneur decided to leave a job that pays $50,000 a year to start a business. These lost wages would be considered

A 45-year-old is diagnosed with macrocytic, normochromic anemia. The nurse suspects the most likely cause of this condition is:

From the previous problem on MN Test, what is your conclusion ? 

 A new drug for lowering blood pressure is tested. One group of 15 patients are given this drug, and their blood pressure levels are measured after 1 hour. The second group of another 15 patients are given a placebo (they don’t know this), and their pressure levels are measured as well.   To test the effect of the drug, we test if there is significant difference of these two data sets. Here is the summary of the blood pressures:  Drug group Sample mean 135 Sample s.d. 20 Placebo group Sample mean 145 Sample s.d. 25 Answer the question: Use rule of thumb, can we believe variances are equal for two group populations ? (True means Yes, and false means No)