Long lines
a. and discrimination according to seller bias are both inefficient rationing mechanisms because they both waste buyers' time.
b. and discrimination according to seller bias are both inefficient rationing mechanisms because the good does not necessarily go to the buyer who values it most highly.
c. are an inefficient rationing mechanism because they waste buyers' time, and discrimination according to seller bias is an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly.
d. are an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly, and discrimination according to seller bias is an inefficient rationing mechanism because it wastes buyers' time.
c
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All other factors being constant, a reduction in price tends to cause which of the following?
A) an increase in supply and an increase in demand B) a reduction in supply and an increase in demand C) an increase in quantity supplied and a reduction in quantity demanded D) a reduction in quantity supplied and an increase in quantity demanded
Assume that for the T = 2 time periods case, you have estimated a simple regression in changes model and found a statistically significant positive intercept. This implies
A) a negative mean change in the LHS variable in the absence of a change in the RHS variable since you subtract the earlier period from the later period B) that the panel estimation approach is flawed since differencing the data eliminates the constant (intercept) in a regression C) a positive mean change in the LHS variable in the absence of a change in the RHS variable D) that the RHS variable changed between the two subperiods
The assumption that firms attempt to maximize profits will yield good predictions even if firms sometimes pursue other goals
a. True b. False Indicate whether the statement is true or false
Marginal land can be defined as land that earns neither profits nor losses
a. True b. False Indicate whether the statement is true or false