Which of the following statements is true?
A. White test can be used to efficiently determine the presence of serial correlation in panel data.
B. The t statistic is not an efficient test to determine serial correlation in panel data.
C. Instrumental variables for both endogenous and exogenous variables are required for estimating simultaneous equation models concerned with panel data.
D. 2SLS should be applied to simultaneous equation models with panel data only after removing the unobserved effects from the equations of interest.
Answer: D
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A firm in a perfectly competitive market can maximize its profits by producing:
A. any level beyond where marginal cost equals marginal revenue. B. any level below where marginal cost equals marginal revenue. C. slightly below its maximal capacity. D. the level of output where marginal cost equals marginal revenue.
If P = MC and MC A. positive
B. negative
C. break-even
D. zero
The distinction between income and needs of the working poor is not vital for policy concerns
Indicate whether the statement is true or false
Which of the following will cause an inward shift in the demand for steaks at a restaurant?
a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease b. A 50 percent reduction in the price of steaks c. A double-digit increase in the price of chicken d. A recession leading to a significant fall in the income levels of consumers e. The expectation that the price of steaks will double within two months