The following is not an appropriate way to tell whether two variables are cointegrated:
A) see if the two variables are integrated of the same order.
B) graph the series and see whether they appear to have a common stochastic trend.
C) perform statistical tests for cointegration.
D) use expert knowledge and economic theory.
Answer: A
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An increase in the population will lead to
a. a rightward shift in every individual's demand curve b. no shift in the market demand curve c. a rightward shift in the market demand curve d. a rightward movement along every individual's demand curve e. a rightward movement along the market demand curve
Suppose the cost function is C(Q) = 50 + Q ? 10Q2 + 2Q3. What is the variable cost of producing 10 units?
A. $560 B. $1,060 C. $1,010 D. $401
Answer the following questions true (T) or false (F)
1. For a perfectly competitive firm, average revenue equals marginal cost at the profit-maximizing output. 2. A perfectly competitive firm breaks even at a price equal to its minimum average total cost. 3. Maximizing average profit is equivalent to maximizing total profit.
Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the market is open to international trade but there is a tariff of $2 per unit imposed, the total government revenue generated by the tariff would be:
A. $40
B. $60
C. $80
D. $100