A barrier to entry is
A) a term used to explain why monopolies always make economic profits.
B) a restriction on the profits that a monopoly can make.
C) the situation when the government produces a good instead of relying on private firms to produce the good.
D) a restriction on starting a business.
Answer: D
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Heteroskedasticity- and autocorrelation-consistent standard errors
A) result in the OLS estimator being BLUE. B) should be used when errors are autocorrelated. C) are calculated when using the Cochrane-Orcutt iterative procedure. D) have the same formula as the heteroskedasticity robust standard errors in cross-sections.
Which of the following is a service?
a. anything that is scarce and that satisfies unlimited human wants b. a thing for which people pay money c. an intangible activity that satisfies human wants d. any output produced by a service-sector industry, such as fast food e. something less desirable than a good
New classical economists believe that government intervention is _____________.
Fill in the blank(s) with the appropriate word(s).
In the Keynesian model, a $5 billion decrease in investment leads to ________ in short-run equilibrium output.
A. a greater than $5 billion decrease B. no change. C. a $5 billion decrease D. a $5 billion increase