Covariance stationarity focuses only on the first two moments of a stochastic process.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: Covariance stationarity focuses only on the first two moments of a stochastic process: the mean and variance, which are constant over time.
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If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
a. The price given by the marginal-revenue curve at that level of output. b. The price given by the marginal-cost curve at that level of output. c. The price given by the average-cost curve at that level of output. d. The price given by the average-revenue curve at that level of output. e. The price given by the total revenue curve at that level of output.
Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model?
A. The Keynesian model assumes that nominal wages are inflexible downward. B. The Keynesian model assumes that people work for motives other than those of earning an income for themselves and supporting a family. C. The Keynesian model assumes that workers can lose their jobs to foreign competition during economic downturns. D. The Keynesian model assumes that the level of real GDP is inflexible.
What is the main theoretical implication regarding the standard employer-based discrimination model?
A. Discrimination is not profitable. B. Discrimination can only occur in competitive labor markets. C. Discrimination can only occur if there are exactly two types of labor (e.g., white and black). D. Workers do not care if firms are discriminatory. E. Most firms are discriminatory.
When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to
A) increased income inequality between rural and urban populations. B) a decreased Gini ratio. C) the Lorenz curve for income to move closer to the line of equality. D) a movement towards a bell-shaped distribution of income.