Which of the following statements is true?
A. OLS estimates in censored regression models are consistent estimators of the population coefficients.
B. In a truncated regression model, the samples are not included randomly from an underlying population but are based on a given rule.
C. In a censored regression model, units in the sample are taken from a particular subset of the population.
D. Maximum likelihood estimators are consistent in truncated regression models even if there is nonnormality or heteroskedasticity in the error terms.
Answer: B
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Refer to Figure 7.1. Start from initial equilibrium. If firms reduce their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; C B) X; A C) Z; C D) Y; C
An increase in government expenditure on goods and services leads to the
A) aggregate supply curve shifting rightward. B) aggregate supply curve shifting leftward. C) aggregate demand curve shifting rightward. D) aggregate demand curve shifting leftward. E) potential GDP increasing.
The labor force is the sum of the
A) working-age population and the number of unemployed people. B) number of employed people and the working-age population. C) number of employed people and the number of unemployed people. D) total population and the number of unemployed people.
A characteristic of an increasing cost industry is that, as the market expands, the:
a. price of the product increases. b. costs of production increase. c. price of the product decreases. d. costs of production decrease.