The assumption of "strict exogeneity" in a regression model means that _____.
A. the dependent variable is binary
B. all explanatory variables change over time
C. the model does not include a lagged dependent variable as a regressor
D. the model includes all relevant explanatory variables
Answer: C
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Eurobank activities cannot have any influence on domestic monetary practice since Eurodollars do not provide a means of payment
Indicate whether the statement is true or false
Marginal utility:
A. is the change in a consumer's utility resulting from the addition of a very small amount of some good. B. is the total utility a resulting from consuming some good, divided by the amount consumed. C. is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the amount added. D. is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the total amount being consumed.
Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$50,$5$15,$30?High Q$40,$2$2,$1If the payoff matrix is a simultaneous-move production game, the Nash equilibrium is for:
A. player 1 to produce low output and player 2 to produce high output. B. both players to produce high output. C. player 1 to produce high output and player 2 to produce low output. D. both players to produce low output.
A student has a job that pays a wage rate of $20 per hour. The night before an economics exam, the student has set aside four hours to study for the exam, estimating that for each hour spent studying, her grade will rise by 5 points. That night, she gets a call from her employer to come to work for a wage rate of $15 per hour for that night. She decides to work for three hours and earn an extra $45. The next day she takes the test and gets a grade of 75. The opportunity cost for her work is
A. the three hours she did not study. B. the entire four hours she set aside for studying. C. the $45 she earned. D. the 15 extra points she estimates that she could have earned on the exam if she had studied the extra three hours.