Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because
a. the firms wish to be more efficient than competition will permit.
b. competition tends to result in lower prices and lower profits.
c. legal restrictions that lessen competition in a market generally benefit consumers.
d. the firms fear that intense competition will lead to higher profits that will attract additional rivals into the market.
B
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The base year is 2005, and the GDP price index in 2004 is 92.0. This implies that the ________.
A. prices in 2005 were higher than in 2004 B. prices in 2005 were lower than in 2004 C. output in 2005 was higher than in 2004 D. output in 2005 was lower than in 2004
Explain how cigarettes could be called "money" in prisoner-of-war camps of World War II
What will be an ideal response?
In the long-run ISLM model and with everything else held constant, the long-run effect of an expansionary monetary policy is to
A) increase real output and the interest rate. B) not change either real output or the interest rate. C) increase real output and leave the interest rate unchanged. D) increase the interest rate and leave real output unchanged.
Using 143 observations, assume that you had estimated a simple regression function and that your estimate for the slope was 0.04, with a standard error of 0.01
You want to test whether or not the estimate is statistically significant. Which of the following possible decisions is the only correct one: A) you decide that the coefficient is small and hence most likely is zero in the population B) the slope is statistically significant since it is four standard errors away from zero C) the response of Y given a change in X must be economically important since it is statistically significant D) since the slope is very small, so must be the regression R2.