Which of the following statements is true?
A. Prais-Winsten and Cochrane-Orcutt transformations are consistent when explanatory variables are not strictly exogenous.
B. The SC-robust standard errors cannot be estimated in models with lagged dependent variables.
C. The SC-robust standard errors work better after quasi-differencing a time series that is expected to be serially correlated.
D. Estimation of SC-robust standard errors is independent of the sample size.
Answer: C
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If the autarky price of S (in terms of T) were lower in country A than in country B,
A) A has a comparative advantage in S. B) B has a comparative advantage in T. C) A has a comparative disadvantage in T. D) All of the above.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day. B. 4 tons per day. C. 0 tons per day. D. 5 tons per day.
If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted B) will rise, cannot be predicted C) cannot be predicted, will fall D) cannot be predicted, will rise
A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm. Those who check in early are much more likely to use the hotel's pool. Explain why this price difference may not be price discrimination
What will be an ideal response?