Which of the following would cause the price elasticity of demand for a variable input to be greater?
A) the smaller the price elasticity of demand for the final product
B) the longer the time period being considered
C) the smaller the proportion of total costs accounted for by the variable input
D) The harder it is for a variable input to be substituted for by other inputs.
B
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How did the Fed peg interest rates during World War 2?
A) by setting a low federal funds rate B) by agreeing to purchase any bonds that were not purchased by private investors C) through extensive use of discount loans D) through nationalization of the banking system
The t-statistic is calculated by dividing
A) the OLS estimator by its standard error. B) the slope by the standard deviation of the explanatory variable. C) the estimator minus its hypothesized value by the standard error of the estimator. D) the slope by 1.96.
If a firm can double inputs and, thereby, more than double output over the range of output the market demands, it is said to be experiencing
a. decreasing minimum efficient scale b. increasing returns to scale c. constant returns to scale d. decreasing returns to scale e. increasing long run average cost
According to the Keynesian model, which of the following policies would be most appropriate during a period of rapid inflation?
a. a tax cut b. a budget deficit c. a budget surplus d. an increase in the money supply