A study based on OLS regressions is internally valid if
A) the errors are homoskedastic, and there are no more than two binary variables present among the regressors.
B) you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula.
C) weighted least squares produces similar results, and the t-statistic is normally distributed in large samples.
D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.
Ans: D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.
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If MUx/Px > MUy/Py, the consumer can increase utility by buying more of good x, which will cause the MUx to rise
a. True b. False
How would a new excise tax affect the supply curve?
(A) It would probably cause the supply curve to shift to the left. (B) It would probably cause the supply curve to shift to the right. (C) The effect cannot be determined without knowing the amount of the tax. (D) It would not change the supply curve, because it would only move price.
When a good becomes more scarce, and the government prevents sellers from raising prices,
A) demanders are prevented from competing against one another to obtain the good. B) the opportunity cost to purchasers of obtaining the good will nonetheless rise as long as the quantity demanded is greater than the quantity supplied. C) the quantity purchased will be greater than the quantity supplied. D) there will be no rationing system to allocate the good among competing users.
If Congress conducted public hearings to decide whether subsidies should be granted to the steel industry, taxpayers would not be well represented at the hearings because
A) no hearing room would be large enough to hold all the taxpayers who would want to testify. B) single taxpayers do not have a large enough stake in the issue to justify the cost of attending the hearings. C) taxpayers would not gain or lose, no matter how the issue was decided. D) they are apathetic. E) they know only money buys votes.