A regression model suffers from functional form misspecification if _____.
A. a key variable is binary.
B. the dependent variable is binary.
C. an interaction term is omitted.
D. the coefficient of a key variable is zero.
Answer: C
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In the long run, a monopolistic competitive firm will operate at a price which:
a. is higher than minimum long-run average cost. b. equals minimum long-run average cost. c. equals marginal cost. d. none of these.
Gresham's Law states that:
a. Good money tends to drive bad money out of circulation. b. Virtual and electronic money tends to drive physical money out of circulation. c. Bad money tends to drive good money circulation. c. In times of financial instability, nations should "gresham," which means to back their currencies by precious metals. d. In times of financial instability, commodity-backed money tends to drive electronic and virtual currencies from circulation.
an increase in marginal tax rates will
What will be an ideal response?
Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00