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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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?
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.