The term ‘u' in an econometric model is usually referred to as the _____.
A. error term
B. parameter
C. hypothesis
D. dependent variable
Answer: A
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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is below point K, the next year's PPF would
A) shift inward along the vertical axis. B) shift outward along the horizontal axis farther than the new PPF shown in the figure. C) shift outward along the vertical axis, not along the horizontal axis. D) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure. E) shift inward along the horizontal axis. The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies.
A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
Explicit agreements between businesses to keep prices high:
A. are illegal. B. are called collusion. C. are not in the public's best interests. D. All of these statements are true.