In econometrics, we typically do not rely on exact or finite sample distributions because
A) we have approximately an infinite number of observations (think of re-sampling).
B) variables typically are normally distributed.
C) the covariances of Yi, Yj are typically not zero.
D) asymptotic distributions can be counted on to provide good approximations to the exact sampling distribution (given the number of observations available in most cases).
Answer: D
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Given the payoffs in the matrix shown, Firm B:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. should always choose to collude, regardless of Firm A's actions.
B. should always choose to compete, regardless of Firm A's actions.
C. should compete if Firm A competes and collude if Firm A colludes.
D. should compete if Firm A colludes and collude if Firm A competes.
What is predatory dumping? How likely is dumping to be predatory? Discuss.
What will be an ideal response?
Suppose Country A is better than Country B at producing all goods. Which of the following statements is true?
A. Country A's superior productivity will lead to higher domestic prices, so trade between the two countries could only benefit Country A. B. As long as the opportunity cost of producing the goods differs between the countries, there will still be opportunities for mutually beneficial trade. C. Trade between Country A and Country B is likely only to benefit Country B since it does not have the productivity advantage that Country A does. D. Country A will have a lower opportunity cost than Country B for the production of all goods.
Because the United States does not have a comparative advantage in producing clothing, a fall in world prices increases imports and ________ U.S. production. U.S. consumers ________ and U.S. producers ________
A) decreases; gain; gain B) increases; gain; lose C) increases; gain; gain D) decreases; gain; lose E) decreases; lose; lose