Which of the following statements is true of hypothesis testing?
A. The t test can be used to test multiple linear restrictions.
B. A test of single restriction is also referred to as a joint hypotheses test.
C. A restricted model will always have fewer parameters than its unrestricted model.
D. OLS estimates maximize the sum of squared residuals.
Answer: C
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The sum of the marginal private benefit and the marginal external benefit derived from eco-tourism in British Columbia is called the
A) total private benefit. B) net gain. C) total external benefit. D) marginal social benefit. E) total Coase benefit.
The moral hazard problem created when consumers acquire health insurance leads them to:
A. Take more care of their health B. Consume more health care services C. Seek less care from their physicians D. Exercise more and eat healthier food
Which of the following is true regarding the measurement of GDP?
A) Wages and profit income are used in the income approach to GDP. B) Wages and consumption are used in the expenditure approach to GDP. C) Consumption and investment are used in the income approach to GDP. D) Government expenditure is only counted in the income approach to GDP. E) Investment and wages are expenditures, and are therefore are used in the expenditure approach to GDP.
Which of the following goods is least likely to be in a market basket?
A. A missile B. A gallon of milk C. A pair of khaki pants D. A tank of heating oil