The figure above shows the demand curve, marginal revenue curve, and marginal cost curve
The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________. A) abf; ace
B) abf; bcd
C) ace; bcd
D) ace; abf
E) bcd; ace
A
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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.
The incidence of a tax refers to
a. who actually collects the tax. b. how frequently the tax is collected. c. who bears the economic burden of the tax. d. how the tax affects prices or wages.
If automobiles and gasoline are complements, then their cross-elasticity coefficient will be:
A. strictly greater than one. B. positive. C. equal to zero. D. negative.
Regarding structural deficits, which of the following assertions is true?
A. The structural deficit depends on the state of the economy. B. The structural deficit is based on actual expenditures and receipts. C. The structural deficit changes only when policy changes. D. The structural deficit changes when GDP changes.