If one person's consumption of a good means that no one else can consume it,
a. that good is called a pure public good
b. production of that good creates a negative externality
c. consumption of that good creates a positive externality
d. the good is said to be excludable
e. the good is said to be rival
E
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Which of the following policies would NOT affect the natural unemployment rate?
A) a reduction in minimum wages B) an increase in public-service employment C) an increase in subsidized private employment D) a reduction sales taxes
A study based on OLS regressions is internally valid if
A) the errors are homoskedastic, and there are no more than two binary variables present among the regressors. B) you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula. C) weighted least squares produces similar results, and the t-statistic is normally distributed in large samples. D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.
If the cost of transportation increases by 20 percent, then, other things the same, the CPI is likely to increase by about
a. 0.3 percent. b. 1.6 percent. c. 3.2 percent. d. 10 percent.
A permanent reduction in inflation would
a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.