The GLS estimator
A) is always the more efficient estimator when compared to OLS.
B) is the OLS estimator of the coefficients in a transformed model, where the errors of the transformed model satisfy the Gauss-Markov conditions.
C) cannot handle binary variables, since some of the transformations require division by one of the regressors.
D) produces identical estimates for the coefficients, but different standard errors.
Answer: B
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Refer to Table 19-27. What is the level of personal income for this economy?
A) $1,140 billion B) $1,010 billion C) $990 billion D) $860 billion
When income is allocated to two goods, x and y, consumer equilibrium occurs when
a. MUx = MUy b. MUx = MUy, and the budget is exhausted c. MUx/Py = PUx/Py d. MUx/Py = PUx/Py, and some money is not spent e. MUx/Py = PUx/Py, and the budget is exhausted
Which of the following causes a shortage to become larger?
a. An increase in market price. b. An increase in supply. c. A decrease in price. d. A decrease in demand.
The low per capita outputs of the DVCs are explained by:
A. insufficient saving and investment. B. overinvestment in human capital. C. slow population growth. D. excessively rapid technological advance.