From 1982 until 2000, stock prices rose dramatically. As measured by the Standard and Poor's 500 composite, stocks went from under ________ to above ________ during this period.
A. 10,000; 200,000
B. 200; 1,400
C. 1,000; 11,000
D. 400; 5,000
Answer: B
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If the estimates of the coefficients of interest change substantially across specifications,
A) then this can be expected from sample variation. B) then you should change the scale of the variables to make the changes appear to be smaller. C) then this often provides evidence that the original specification had omitted variable bias. D) then choose the specification for which your coefficient of interest is most significant.
According to the principle of comparative advantage, total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?
a. Opportunity costs are lowest. b. Absolute advantages are highest. c. Opportunity costs are equal. d. Absolute advantages are lowest.
If the government legislates policies that block imports of solar panels and gives domestic manufacturers a $5 billion-dollar tax subsidy, the benefits to the U.S. solar panel manufacturing and distribution industry will be very visible. The bearers of the cost of the tax subsidy _____.
a. are easy to identify b. also fit this pattern of identifiable winners c. will have their interests counterbalanced over time d. are more anonymous
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by a. 40 per month. b. 50 per month. c. 75 per month. d. 100 per month.