Risk aversion simply means that people dislike bad things to happen
a. True
b. False
Indicate whether the statement is true or false
False
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Unbiasedness and small variance are desirable properties of estimators
However, you can imagine situations where a trade-off exists between the two: one estimator may be have a small bias but a much smaller variance than another, unbiased estimator. The concept of "mean square error" estimator combines the two concepts. Let be an estimator of ?. Then the mean square error (MSE) is defined as follows: MSE( ) = E( – ?)2. Prove that MSE( ) = bias2 + var( ). (Hint: subtract and add in E( ) in E( – ?)2.) What will be an ideal response?
Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms b. They lower prices together c. They raise prices together d. They know with certainty what they other firms will do e. They take into consideration how other firms might react.
Economists who have studied the impact of immigration on world welfare generally find after considering impacts on all constituencies that world GDP has _______ as a result of immigration of workers and FDI.
a. decreased b. risen c. remained constant d. decreased sharply
The primary difference between a change in demand and a change in the quantity demanded is:
A) a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. B) a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. C) both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. D) both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions