Probit coefficients are typically estimated using

A) the OLS method
B) the method of maximum likelihood
C) non-linear least squares (NLLS)
D) by transforming the estimates from the linear probability model


Answer: B) the method of maximum likelihood

Economics

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In 2011, the research of Professors Thomas Sargent and Christopher Sims led to ______.

a. the invalidation of rational expectations theory b. the creation of rational expectations theory c. a Nobel prize d. growth in real GDP

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If marginal cost is above average variable cost, then

A) average variable cost is increasing. B) marginal cost must be decreasing. C) average variable cost is constant. D) average variable cost is decreasing.

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In the United States, monetary policy is formed by:

A. the President and approved by Congress. B. committee. C. the Chairman of the Federal Reserve and can only be overturned by the presidents of the Regional Federal Reserve Banks. D. an individual advised by a close group of people.

Economics

You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the camera you're looking at costs 115 euros, under which of

the following exchange rates would you be willing to purchase the camera? (Assume no taxes or duties are associated with the purchase.) A) 0.56 euros per dollar B) 0.89 euros per dollar C) 0.92 euros per dollar D) You would purchase the new camera at any of the above exchange rates.

Economics