Which of the following would most likely be classified as a natural monopoly?
A) a city water district
B) Microsoft
C) Disneyland
D) Exxon-Mobil
Answer: A
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The rise in average living standards experienced by most industrialized countries:
A. was more rapid before 1870 than after 1870. B. has been continuous over the course of human history. C. has resulted primarily from an increase in population worldwide. D. has been more rapid since 1950 than before 1950.
The law of supply says that
a. supply and income are inversely related b. supply follows demand c. quantity supplied equals quantity demanded d. price and quantity supplied are inversely related e. price and quantity supplied are directly related
Consider a simple linear regression model, y = ?0+ ?1x + u,. What does the zero conditional mean assumption imply?
A. The expected value of the error term, u , is zero, regardless of what the value of the explanatory variable, x, is. B. The estimated average value of ?1 is zero. C. The expected value of the explained variable, y , is zero, regardless of what the value of the explanatory variable, x , is. D. The estimated average value of ?0 is zero.
When the price of a normal good decreases, the substitution effect causes the quantity demanded to increase. When the price of an inferior good decreases, the substitution effect causes the quantity demanded to decrease.
a. true b. false