1. Suppose that tuition charged by public universities increases. What will be effect
on demand for private college education? Assume private and public universities
are substitutes. What will be the effect on equilibrium price and quantity?
Demand for pr
Solutions for Practice questions for week 1
Suppose you are thinking of starting a new business. You will need to give up your current job
that pays you $20,000. You will pay your labor $10,000 and your capital $12,000. These are
your only costs. You c
Refer to the data below.
Labor force = employed + unemployed = 5000 + 500 = 5500
Unemployment rate = unemployed / labor force
Solutions for Practice questions for week 6
1. A period during which aggregate output declines is known as
a. a recession.
b. an inflation.
c. a hyperinflation.
d. a boom.
Definition of a recession.
2. A prolonged and deep recession is called
a. a busines