The binary dependent variable model is an example of a
A) regression model, which has as a regressor, among others, a binary variable.
B) model that cannot be estimated by OLS.
C) limited dependent variable model.
D) model where the left-hand variable is measured in base 2.
Answer: C) limited dependent variable model.
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If the current unemployment rate is less than the natural unemployment rate, then the economy is
A) in long-run equilibrium. B) in an inflationary gap. C) in a recessionary gap. D) producing at full employment. E) b and d
Say 6 homogenous consumers have individual willingness to pay P = 20 - 4Q. If the marginal cost of providing Q is 6Q, the optimal amount of Q is
A. 0. B. 2. C. 6. D. 4.
The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price decreases from $10 to $5?
A. 0.2 B. 0.5 C. 0.6 D. 1
Suppose $100 invested next year results in a return of b two years from now. If individuals do not discount the future but have a beta of 0.5 (in the beta-delta model), for what range of b will an individual plan to make the investment but then reverse course next year?
What will be an ideal response?