In the Fixed Effects regression model, using (n – 1) binary variables for the entities, the coefficient of the binary variable indicates
A) the level of the fixed effect of the ith entity.
B) will be either 0 or 1.
C) the difference in fixed effects between the ith and the first entity.
D) the response in the dependent variable to a percentage change in the binary variable.
Answer: C
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If the U.S. dollar depreciates in the foreign exchange market, American exports will be __________ and American imports will be __________
a. more expensive; more expensive b. cheaper; cheaper c. less expensive; less expensive d. less expensive; more expensive e. there will be no change
When Republicans and Democrats offer similar platforms in an election campaign, a likely explanation is the
a. Arrow impossibility theorem. b. Condorcet paradox. c. median voter theorem. d. fact that politicians are more interested in the national interest than their own self-interest.
When you care more about what your friends think of a good or service than what experts or other consumers in general think, you are making the error of ______.
a. assuming complete self-control b. choosing options that are positively framed c. giving too much weight to a small sample d. valuing your personal property too highly
Corn and poultry prices are typically linked because
A. corn is a complement to poultry. B. corn is an input to poultry. C. corn is a substitute for poultry. D. they are alternative outputs.