Using 143 observations, assume that you had estimated a simple regression function and that your estimate for the slope was 0.04, with a standard error of 0.01
You want to test whether or not the estimate is statistically significant. Which of the following possible decisions is the only correct one:
A) you decide that the coefficient is small and hence most likely is zero in the population
B) the slope is statistically significant since it is four standard errors away from zero
C) the response of Y given a change in X must be economically important since it is statistically significant
D) since the slope is very small, so must be the regression R2.
Answer: B
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Which of the following statements is (are) correct? According to United States data,
a. the rate of growth in output and labor productivity has slowed over the past two decades. b. growth in the labor force has steadily increased since 1960. c. the growth rates of capital has slowly increased since the 1960s. d. the rate of growth in output and labor productivity was slower during the 1990s. e. none of the above.
Indirect price discrimination differs from direct price discrimination because
a. In direct price discrimination high value consumers can sometime enjoy the benefits of a low-values customer b. In Direct price discrimination firms do not have to worry about cannibalizing c. In direct price discrimination there is a risk of creating profitable entries for rival but for indirect price discrimination, this can be avoided d. There is no difference between the two
Strategic behavior is key feature in which market structure?
A. Monopolistic competition B. Perfect competition C. Oligopoly D. Monopoly
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. If there are no restrictions of any kind on burning leaves and negotiation costs among citizens are prohibitive, what will happen to the leaves in the town?
What will be an ideal response?