The EG-ADF test
A) is the similar to the DF-GLS test
B) is a test for cointegration
C) has as a limitation that it can only test if two variables, but not more than two, are cointegrated
D) uses the ADF in the second step of its procedure
Answer: B
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In peak-load pricing,
A) marginal revenue is equal in both periods. B) marginal revenue in the peak period is greater than in the off-peak period. C) marginal revenue in the peak period is less than in the off-peak period. D) the sum of the marginal revenues is greater than the sum of the marginal costs.
Economists love auctions because
a. They maximize consumer surplus b. They minimize producer surplus c. They set the price for the item, avoiding costly negotiations d. They open the door to costly negotiations, with room for manipulation
Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8 . Holding other things constant and assuming both goods are complements, the acquiring firm should
a. lower prices on both goods with a larger decrease in Firm A's good b. lower prices on both goods with a larger decrease in Firm B's good c. Lower prices on both goods by the same amount d. Lower prices on both goods
Economists refer to the pattern of income that people derive from different factors of production as the:
A. factor price. B. factor distribution of income. C. factor stream of income. D. expected future factor value.