When a tax is imposed on sellers, consumer surplus and producer surplus both decrease
a. True
b. False
Indicate whether the statement is true or false
True
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If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of
A) adverse selection. B) regulatory lag. C) irrational behavior. D) moral hazard.
Which indicator shows how well a regression line fits through the scatter of data points?
A) F-test B) R2 C) t-test D) Durbin-Watson test
To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market
The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output. B) building a very large factory that could potentially produce enough output to meet most of the market demand. C) signing long-term purchase contracts for large amounts of production inputs. D) all of the above
Probit coefficients are typically estimated using
A) the OLS method B) the method of maximum likelihood C) non-linear least squares (NLLS) D) by transforming the estimates from the linear probability model