In the market for goods and services, firms produce goods and services and receive revenue in return, while consumers incur expenditures in order to purchase these goods and services
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 4-6. What area represents consumer surplus at P2?
A) B + C B) A C) A + B D) A + B + D + E
Suppose that you are interested in estimating the average impact a job training program has on wages. However, you recognize that there are some observed factors that influence wage, participation on the training program, or both.You may still get the unbiased estimate for the program effectiveness by:
A. Excluding those observed factors from your model and running a simple linear regression
B. Including only the factors that predict wage but not participation as controls and running a multiple linear regression
C. Including only the factors that predict participation but not wage as controls and running a multiple linear regression
D. ?
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, more years of work would be required to pay off a student loan if all prices (including your salary):
A. remained stable. B. increased by 20 percent. C. decreased by 10 percent. D. increased by 40 percent.
A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. This is an example of
A. cyclical unemployment. B. frictional unemployment. C. seasonal unemployment. D. structural unemployment.