If nominal GDP rises from one year to the next, then
a. the economy must be producing a larger output of goods and services.
b. prices at which goods and services are sold must be higher.
c. either output, or the general level of prices, or both must be rising.
d. employment and productivity must be rising.
C
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If people act as if they systematically pursue their own self-interest, then they will most likely
A) respond irrationally to any incentive. B) respond to a given incentive in a random manner. C) respond predictably to a given incentive. D) not respond to any incentive.
Historical note: In separate court cases, ALCOA and DuPont both faced charges brought by the government that they
a. flooded the market with output to undermine its competition b. charged excessively high prices c. imposed illegal barriers to entry in their respective markets d. monopolized their markets e. sought to create monopolistic competition in their markets
Which of the following is true of two stage least squares estimators?
A. The two stage least squares estimator is equal to the instrumental variable estimator if R2 is equal to 1. B. The two stage least squares estimators are biased if the regression model exhibits multicollinearity. C. The two stage least squares estimators have lower variance than the ordinary least squares estimators. D. The two stage least squares estimators have large standard errors when R2 lies close to 0.
Recall the Application about the link between happiness and GDP to answer the following question(s). Comparing changes in happiness to changes in per capita income over the last 30 years, economists at Dartmouth College and Warwick University have measured levels of happiness in the United States and United Kingdom based on income levels, ethnicity, age, and gender.According to the article, how did the researchers conclude work may hinder happiness, even with higher income.
What will be an ideal response?