Identifying the causal effects of a policy by looking at two samples that lie on either side of a threshold is called
A. intention to treat.
B. regression discontinuity.
C. statistical significance.
D. difference-in-differences.
Answer: B
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Explain how advertising influences the demand for a firm's product
What will be an ideal response?
Which of the following best describes the reason why the division of labor allows individuals and firms to specialize and produce more?
a. It reduces the need for more workers. b. It limits the need for economies of scale. c. It allows individuals and firms to focus on areas of disadvantage due to natural factors and skill levels. d. It allows individuals and firms to take advantage of economies of scale.
If the dollar price of the English pound goes from $1.50 to $1.75, the dollar has
a. appreciated, and Americans will find English goods cheaper. b. appreciated, and Americans will find English goods more expensive. c. depreciated, and Americans will find English goods cheaper. d. depreciated, and Americans will find English goods more expensive.
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 When the firm uses 9 employee-hours per day, its total variable cost each day is:
A. $56. B. $84. C. $30. D. $126.