For which of the following individuals would the opportunity cost of going to college be highest?
a. a promising young mathematician who will command a high salary once she earns her college degree
b. a student with average grades who has never held a job
c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree
d. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball
c
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To calculate the J-statistic you regress the
A) squared values of the TSLS residuals on all exogenous variables and the instruments. The statistic is then the number of observations times the regression R2. B) TSLS residuals on all exogenous variables and the instruments. You then multiply the homoskedasticity-only F-statistic from that regression by the number of instruments. C) OLS residuals from the reduced form on the instruments. The F-statistic from this regression is the J-statistic. D) TSLS residuals on all exogenous variables and the instruments. You then multiply the heteroskedasticity-robust F-statistic from that regression by the number of instruments.
Suppose Hannah's Cookies sells cookies in a perfectly competitive market. It sells 200 cookies per week at a price of $2 per cookie. If it decides to increase the price to $2.50 per cookie, then its sales _____
a. will decrease by 150 cookies per week b. will decrease by more than 200 cookies per week c. will drop down to zero d. will decrease by 100 cookies per week
In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that
A. existing capital equipment can be used more intensively. B. wage rates rise almost simultaneously with the price level. C. the unemployment rate usually rises dramatically along with the price level. D. workers can be switched from counted to uncounted production.
For an individual who has special talent as a singer, a large proportion of her salary can be considered
A. a fixed cost. B. opportunity cost. C. a payment below opportunity cost. D. economic rent.