A dummy variable trap arises when a single dummy variable describes a given number of groups.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: A dummy variable trap arises when too many dummy variables describe a given number of groups.
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The demand for cat food decreases while the supply increases. The equilibrium price of cat food ________, and the equilibrium quantity ________
A) does not change; increases B) rises; decreases C) falls; perhaps changes but we can't say if it increases, decreases, or stays the same D) rises; perhaps changes but we can't say if it increases, decreases, or stays the same E) falls; increases
Every luxury good is a normal good but not every normal good is a luxury.
Answer the following statement true (T) or false (F)
The relationship between the level of investment and the change in the level of national income is the
a. principle factor generating the innovation cycle b. marginal propensity to invest c. administrative lag d. accelerator e. principle factor generating the real business cycle
Which retail operation would have the highest costs per book sold?
a. a small independent bookstore b. a large retail bookstore chain c. an Internet seller of books d. All would have the same costs.