Suppose that, in a fixed effects analysis, controlling for the policy intervention in the current time period, the next period’s policy assignment predicts the outcome in the current period. This means that the research design is valid.
Answer the following statement true (T) or false (F)
False
Rationale: If controlling for the intervention this period, next period's assignment helps predict the outcome this period, then the fixed effects estimator is likely to have been biased.
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Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?
A) The demand for pizzas decreases and the demand for tacos increases. B) The demand for both goods decreases. C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. D) The quantity of pizza demanded decreases and the demand for tacos increases. E) The demand for each decreases because both are normal goods.
Why does a patent stimulate research?
A) Patents give firms time to do research. B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive. C) Without patents firms would not research as much. D) They don't.
The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown above. The payoffs are thousands of dollars of economic profit
In the Nash equilibrium, Firm A will set a price of ________ and Firm B will set a price of ________. A) $10; $20 B) $20; $10 C) $10; $10 D) $20; $20 E) $20; something, but more information is needed to determine Firm B's price
Community-wide poverty:
A. is nonexistent in the developed world. B. creates problems beyond those faced by poor individuals living in wealthier communities. C. only creates problems in less wealthy countries. D. None of these is true.