In order to identify differences in preferences among various countries, one would look for evidence that
a. indifference curves from different countries cross.
b. prices for goods differ among countries.
c. different market baskets are chosen among different nationalities.
d. higher income countries choose baskets with more of all goods.
a. indifference curves from different countries cross.
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If there are four firms in an industry with market shares of 50 percent, 40 percent, 5 percent, and 5 percent, the Herfindahl-Hirschman Index is
A) 100. B) 4150. C) 25. D) 3450. E) undefined because there are not 50 firms in the industry.
An index number is important only in a relative sense -- in comparison to an index number from another period
a. True b. False
Which of the following problems can arise in policy analysis and program evaluation using a multiple linear regression model?
A. There exists homoskedasticity in the model. B. The model can produce predicted probabilities that are less than zero and greater than one. C. The model leads to the omitted variable bias as only two independent factors can be included in the model. D. The model leads to an overestimation of the effect of independent variables on the dependent variable.
Section 1 of the Sherman Antitrust Act makes it illegal to
A) form a monopolistically competitive firm. B) restrain trade. C) price discriminate. D) have an oligopoly.