Which of the following is true of squared forecast errors?
A. An error of +2 yields a greater loss than an error of ?2.
B. An error of ?2 yields a greater loss than an error of +2.
C. An error of ?2 or +2 yields the same loss.
D. Loss from positive and negative forecast errors cannot be compared.
Answer: C
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Bo is available and willing to work but has not actively looked for work in the past month. Bo is ________ of the labor force and is ________
A) part; counted as unemployed B) part; not counted as unemployed C) not part; not counted as unemployed D) not part; counted as unemployed only if he has had a job within the last 12 months E) not part; counted as unemployed regardless of whether or not he has had a job within the last 12 months
As the income for bus consumers increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
Answer the following statements true (T) or false (F)
1. Once the monopolistic competitor is established and earning positive economic profits, no other firms will be able to profitably enter the market. 2. There are no benefits to monopolistic competition, because it does not provide either productive or allocative efficiency. 3. Oligopolies can form when smaller firms would have higher average costs and be unable to compete, while larger firms would produce such a high quantity that they would not be able to sell it at a profitable price. 4. Even when oligopolists recognize that they would benefit as a group by acting like a monopoly, if one or more give in to the temptation to produce just a slightly higher quantity and earn a slightly higher profit, the market price will fall. 5. Because of antitrust regulations, merging businesses are not allowed to hire workers or lay them off for a period of at least 18 months.
The relationship between the producer price index (PPI) and the consumer price index (CPI) is such that, in the short run
A. the PPI usually increases before the CPI. B. the CPI and the PPI usually move in opposite directions. C. the CPI usually increases before the PPI. D. the CPI and the PPI usually move simultaneously.