To achieve large and lasting increases in output,
A. The production possibilities curve must shift inward.
B. The production possibilities curve must shift outward.
C. We must move to a point slightly below the production possibilities curve.
D. We must move to a point along the production possibilities curve.
Answer: B
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Suppose that with a strictly enforced rent ceiling on rooms of $550 a month, a black market develops. How high could the black market rent be and would the on-campus housing market be fair? Explain your answer
What will be an ideal response?
Finite-sample distributions of the OLS estimator and t-statistics are complicated, unless
A) the regressors are all normally distributed. B) the regression errors are homoskedastic and normally distributed, conditional on X1,... Xn. C) the Gauss-Markov Theorem applies. D) the regressor is also endogenous.
How would a country offset the effects of reduced government spending (assume fixed exchange rates and low international capital mobility)?
a. The central bank would sell securities in the open market. b. The central bank would buy securities in the open market. c. The central bank would buy domestic currency in the foreign exchange market. d. The central bank would raise the discount rate.
Which of the following is not a reason people choose to depend on others for goods and services?
a. to improve their lives b. to allow them to enjoy a greater variety of goods and services c. to consume more of each good without working any more hours d. to allow people to produce outside their production possibilities frontiers