Consider a model with one endogenous regressor and two instruments. Then the J-statistic will be large
A) if the number of observations are very large.
B) if the coefficients are very different when estimating the coefficients using one instrument at a time.
C) if the TSLS estimates are very different from the OLS estimates.
D) when you use homoskedasticity-only standard errors.
Answer: D) when you use homoskedasticity-only standard errors.
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The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.Real Domestic Output Demanded (in Billions)Price Level (Index Value)Real Domestic Output Supplied (in Billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000Refer to the above table. If the quantity of real domestic output demanded increased by $2000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 350 and $8000. B. 300 and $8000. C. 200 and $6000. D. 250 and $7000.
The imposition of an excise tax on a service will _____ the supply of that service.
Fill in the blank(s) with the appropriate word(s).
Suppose a perfectly competitive firm's total revenue is equal to $210 and its output is 70 units, when its marginal-cost curve intersects the marginal-revenue curve. What is the marginal revenue earned by the firm?
a. $15 b. $3 c. $30 d. $7 e. $70
The net loss to society from a tax on a product can be measured as: a. the loss in consumer surplus
b. the loss in producer surplus. c. the loss in both consumer and producer surplus. d. the difference between the loss in consumer and producer surplus and the gain in tax revenue.