According to Adam Smith, what role does individual self-interest play in directing human activity?
What will be an ideal response?
It is a powerful force for economic progress when it is directed by competitive markets.
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Imperfect multicollinearity
A) implies that it will be difficult to estimate precisely one or more of the partial effects using the data at hand B) violates one of the four Least Squares assumptions in the multiple regression model C) means that you cannot estimate the effect of at least one of the Xs on Y D) suggests that a standard spreadsheet program does not have enough power to estimate the multiple regression model
In comparing the traditional way of structuring mortgages and the newer structure of providing mortgages that securitized them and insured those securities with credit-default swaps, it is clear that the ________ structure allowed more people to afford homes and that the ________ structure was safer to the health of the overall economy.
A. traditional; newer B. newer; newer C. newer; traditional D. traditional; traditional
Depositary receipts traded outside the United States are called ________ depositary receipts.
A) Euro B) Global C) American D) None of the above
If FICA takes the same percentage rate of everyone’s pay, how can it take a higher proportion of the income of lower earners?
a. Lower earners have to pay the full amount, whereas higher earners’ employers pay half. b. The income from which FICA is taken is capped, so higher earners are not taxed on earnings above that amount. c. Lower earners are required to pay FICA during the year, and again as part of income taxes at the end of the year. d. FICA is only taken from hourly wages, so salaried workers, who usually earn higher incomes, do not have to pay it.