Which of the following did classical economists believe caused depressions and high unemployment??
a. Sticky product prices
b. Tax increases
c. Business expectations
d. Sticky wages
e. Sticky interest rates
Ans: b. Tax increases
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An import quota protects domestic producers by
A) setting a limit on the amount of imports. B) placing a prohibitive tax on imports. C) encouraging competition among domestic producers. D) increasing the total supply of the product.
Sample selection bias
A) occurs when a selection process influences the availability of data and that process is related to the dependent variable. B) is only important for finite sample results. C) results in the OLS estimator being biased, although it is still consistent. D) is more important for nonlinear least squares estimation than for OLS.
Which statement about income inequality is true?
a. Income inequality is the disparity between those with higher and lower incomes. b. Income inequality and poverty are synonymous terms. c. Income inequality applies to the condition of people who cannot afford necessities. d. Income inequality refers to the percentage of the population living below the poverty line.
Which currency is being valued in the following expression: $5/€?
a. Euro (€) b. Dollar ($) c. Both d. None