If we import more than we export from the rest of the world we
A) must borrow an equal amount from the rest of the world.
B) can lend an equal amount to the rest of the world.
C) are running a trade surplus.
D) are helping to finance investment in the rest of the world.
A
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A country's capital stock decreased after a war while its labor supply remained constant. Which of the following will happen in this case if output is a function of capital and efficiency units of labor?
A) Its total output will remain constant. B) Its total output will decrease. C) Its per capita output will remain constant. D) Its per capita output will increase.
In the above figure, the slope across the arc between b and c is
A) 1/2. B) 2/3. C) 1. D) 2.
For monopoly
A) the four-firm concentration ratio is 100. B) the Herfindahl-Hirschman Index is 10,000. C) there is only one firm in the industry. D) All of the above answers are correct.
Misspecification of functional form of the regression function
A) is overcome by adding the squares of all explanatory variables. B) is more serious in the case of homoskedasticity-only standard error. C) results in a type of omitted variable bias. D) requires alternative estimation methods such as maximum likelihood.