If variables with a multivariate normal distribution have covariances that equal zero, then
A) the correlation will most often be zero, but does not have to be.
B) the variables are independent.
C) you should use the ?2 distribution to calculate probabilities.
D) the marginal distribution of each of the variables is no longer normal.
Ans: B) the variables are independent.
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A principal idea associated with public choice theory is that
a. special interests dictate what government does b. the public chooses, but the government does what it wants c. government failure is less than market failure d. market failure is less than government failure e. people's choices dictate what government does
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What will be an ideal response?
When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
A. Marginal cost of production that is too low, and there is a supply-side market failure
B. Marginal benefit of production that is too high, and there is a demand-side market failure
C. Marginal cost of production that is too high, and there is a supply-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false