Under imperfect multicollinearity

A) the OLS estimator cannot be computed.
B) two or more of the regressors are highly correlated.
C) the OLS estimator is biased even in samples of n > 100.
D) the error terms are highly, but not perfectly, correlated.


Answer: B

Economics

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Suppose that in 2015 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2016 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

A) Estonia's rate of inflation is higher than Lithuania's. B) Lithuania is a more expensive place to live than Estonia. C) Estonia is a more expensive place to live than Lithuania. D) Lithuania's rate of inflation is higher than Estonia's.

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As a result of an increase in the money supply, the aggregate demand will shift to the left.

a. true b. false

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Monopoly pricing creates a social loss that is captured by no one.

Answer the following statement true (T) or false (F)

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Indifference curves

A. are horizontal. B. are vertical. C. slope upward. D. slope downward.

Economics