Consider the following simple regression model y = ?0 + ?1x1 + u and z is an instrument for x. Suppose x and z are both positively correlated with u and Corr(z,x) > 0. Then, the asymptotic bias in the IV estimator is less than that for OLS only if:?
A. ?Corr(z,u)/ Corr(z,x) = Corr(x,u).
B. ?Corr(z,u)/ Corr(z,x) > Corr(x,u).
C. ?Corr(z,u)/ Corr(z,x) < Corr(x,u).
D. ?Corr(z,u)/ Corr(z,x) ? Corr(x,u).
Answer: C
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Points on the production possibilities frontier have the property that they
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Private investment spending escalated during the post-World War II era (1945–50)
Indicate whether the statement is true or false
The net export component of aggregate demand is defined as U.S
a. imports minus U.S. exports. b. imports plus U.S. exports. c. exports minus U.S. imports. d. exports minus taxes and customs duties.
For the perfectly competitive firm shown in Figure 9-6,
a.
profit rises when the firm raises its price and lowers its output
b.
the profit-maximizing output level is 180 units
c.
an economic loss occurs at the profit-maximizing output level
d.
the profit-maximizing output level is 100 units
e.
the firm will earn short-run profits