A manager wishes to estimate an average cost equation of the following form: C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: 
Given the above information, which of the parameter estimates are statistically significant at the 1% significance level?
A. All parameter estimates except b? are statistically significant.
B. â is not statistically significant, but all the rest of the parameter estimates are significant.
C. c? is not statistically significant, but all the rest of the parameter estimates are significant.
D. All parameter estimates are statistically significant.
Answer: A
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Which of the following statements best describes why we cannot be assured that bureaucrats who believe in the mission of their bureaus will always act in the public interest?
a. Logrolling among members of Congress ties the hands of the bureaucracy, preventing them from acting in the public interest. b. Bureaucrats do not personally benefit from larger budgets, but if they care about the mission of the bureau they will personally gain from acting in the public interest. c. Free riding on the work of other within the bureau will make acting in the public interest impossible. d. Self-interest is a powerful motivator, regardless of whether an individual operates in the public or private sector.
If labor productivity increases
A) labor costs rise by equal increments. B) the demand for labor increases. C) some workers will be laid off. D) jobs will relocate.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
Real GDP is:
(a) GDP valued at current market prices. (b) GDP valued at base year prices. (c) GDP valued at current input prices. (d) The nominal value of GDP.