Answer the following statements true (T) or false (F)
1) If a firm maximizes its expected profit, it will never produce the quantity that maximizes actual profit.
2) The R2 of a regression measures how closely the predicted values match the actual values.
3) In reality, obtaining a forecast regression with a R2 equal to 1 is possible.
4) The more variable a firm's demand, the smaller the difference between the quantity produced with no information about demand and quantity produced with a perfect forecast of the demand.
5) The flatter a firm's marginal cost curve, the more sensitive the quantity produced is to changes in the firm's demand.
1) TRUE
2) TRUE
3) FALSE
4) FALSE
5) TRUE
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Do automatic fiscal stabilizers eliminate business cycles?
A) Yes B) No, because they have no effect if the business cycle is the result of some unanticipated change C) No, but they do moderate business cycles D) No, they increase the likelihood that a business cycle occurs E) No, they make business cycle fluctuations more severe
What is utility and how do we use the concept of utility to describe a consumer's preferences?
What will be an ideal response?
According to dynamic tax analysis, will continuing to push up the tax lead to steady increases in tax revenues? Why?
What will be an ideal response?
The parable called the Tragedy of the Commons applies to goods such as
a. fire protection and cable TV. b. tornado sirens and basic research. c. clean air and clean water. d. antipoverty programs and national defense.