With heteroskedastic errors, the weighted least squares estimator is BLUE. You should use OLS with heteroskedasticity-robust standard errors because
A) this method is simpler.
B) the exact form of the conditional variance is rarely known.
C) the Gauss-Markov theorem holds.
D) your spreadsheet program does not have a command for weighted least squares.
Ans: B) the exact form of the conditional variance is rarely known.
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A result of selling concert tickets cheaply, that is below the equilibrium price, will be that
a. only those with nothing else to do will wait in line to buy a ticket. b. ticket buyers' benefits increase, at the expense of the performers. c. the costs associated with competition among buyers for the limited number of tickets will create deadweight losses. d. more tickets will be sold than if the price were at the market equilibrium.
Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 2 cents per page, what is Fast Copy's profit maximizing level of output?
A) 16 pages per hour B) 32 pages per hour C) 48 pages per hour D) 64 pages per hour
If the actual price level is lower than the expected price level reflected in long-term contracts,
a. the actual rate of unemployment will be less than the natural rate of unemployment. b. the actual rate of unemployment will exceed the natural rate of unemployment. c. the natural rate of unemployment will rise. d. the natural rate of unemployment will fall.
Figure 3-15
Refer to . Which area represents producer surplus when the price is P1?
a.
BCE
b.
ACF
c.
ABED
d.
DEF