An R2 close to 1
A) does not happen with real data.
B) indicates that almost all of the variation in the dependent variable is explained by the regression.
C) does not explain variation as well as an R2 that is above 2.
D) means that the regression line does not fit the data very well.
B
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Refer to the Article Summary. If Netflix chose to use Shiller's pricing method
A) consumer surplus, producer surplus, and deadweight loss would all be equal. B) producer surplus would be zero. C) deadweight loss would be maximized. D) consumer surplus would be zero.
Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
Trade diversion reduces worldwide efficiency, because:
a. production is diverted to the country with the comparative advantage. b. production is diverted from the country with the comparative advantage. c. unnecessary trade restrictions are created in the economies. d. consumption is diverted to the country having inadequate demand. e. the cost of transshipment of the goods increases thus raising their prices in the world market.
Since individual consumers do not know how much of the price they pay for a commodity is due to protection, consumers rarely lobby their political representatives to eliminate protection and reduce prices
a. True b. False Indicate whether the statement is true or false