Consider the equation, y =  + 1x1+ 2x2 + u. A null hypothesis, H0:

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A. x₂has no effect on the expected value of ₂.
B. x₂ has no effect on the expected value of y.
C. ₂ has no effect on the expected value of y.
D. y has no effect on the expected value of x_2.

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Answer: B

Economics

If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:

A. government budget deficit. B. government budget surplus. C. trade deficit. D. trade surplus.

According to the text, one important economic application of the anchoring and adjustment bias is

A. in estimating the failure rates of complex projects. B. to evaluate consumer behavior with regard to luxury spending. C. to increase productivity in volunteer organizations. D. to estimate production costs of simple operations.

An increase in the tax on cigarettes _____________ cigarettes.

A. increases demand for B. decreases demand for C. increases the supply for D. decreases the supply for

A good that entails relatively high fixed costs associated with the use of knowledge and other information-intensive inputs as key factors of production is

A. an information product. B. a search good. C. a logo good. D. a persuasive good.