Evidence on the existence of relative PPP shows that:
A) the evidence for relative PPP is scanty and theory is large discredited
B) the evidence for relative PPP is hit or miss, and so one should exercise cations in using relative PP to predict changes in exchange rates
C) relative PPP is an approximate guide to predicting the relationship between changes in inflation and exchange rates over long periods such as decades
d) relative ppp holds nearly perfectly in the short and long run, are used with great accuracy to make predictions
Ans: C) relative PPP is an approximate guide to predicting the relationship between changes in inflation and exchange rates over long periods such as decades
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In the above figure, the equilibrium level of labor is
A) 100 billion hours. B) 150 billion hours. C) 200 billion hours. D) none of the above
Consider a monopoly who posts an economic profit of $10,000,000. All else equal, this monopolist should expect
A) entry into its market, prices to fall, profits to fall. B) no entry into its market, prices to remain the same, profits to remain the same. C) exit from its market, prices to rise, profits to rise. D) entry into its market, the need to increase price, profits to remain the same.
A regression model exhibits unobserved heterogeneity if _____.
A. there are unobserved factors affecting the dependent variable that change over time B. there are unobserved factors affecting the dependent variable that do not change over time C. there are unobserved factors which are correlated with the observed independent variables D. there are no unobserved factors affecting the dependent variable
The United States was among the first of the modern industrial nations to establish a central banking system.
Answer the following statement true (T) or false (F)