Which of the following is most likely to incorporate a great deal of economic rent?
a. sale of a bag of potato chips
b. salary paid to an employee at the local Home Depot
c. a soft drink sold by a vending machine
d. sale of a rare stamp
d
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Moral hazard exists chiefly because of
A) economies of scale. B) diseconomies of scale. C) private information. D) public information.
A multiperiod regression forecast h periods into the future based on an AR(p) is computed
A) the same way as the iterated AR forecast. B) by estimating the multiperiod regression Yt = ?0 + ?1Yt-h + ... + ?pYt-p-h+1 + ut, then using the estimated coefficients to compute the forecast h periods in advance. C) by estimating the multiperiod regression Yt = ?0 + ?1Yt-h + ut , then using the estimate coefficients to compute the forecast h period in advance. D) by first computing the one-period ahead forecast, next using that to compute the two-period ahead forecast, and so forth.
A price-discriminating monopolist will produce an output:
A. above that of a normal monopolist. B. below that of a normal monopolist. C. the same as that of a normal monopolist. D. above that of a competitive market.