Which of the following problems would lead an economist to use instrument variable methods?
A) The dependent variable has an impact on the independent variable.
B) There are too few quarters of data.
C) There are too many independent variables.
D) The R2 is too high.
E) The residuals are too small.
A
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In both perfect competition and monopoly, a firm: a. maximizes profit by equating marginal revenue to marginal cost
b. will shut down in the short run if price is less than average variable cost. c. will always earn a zero economic profit. d. will be characterized by both (a) and (b).
The M2 measure of money supply includes all of the following, except:
a. demand deposits. b. U.S. government securities. c. savings deposits. d. money market deposits. e. certificates of deposit.
How does a natural monopoly function?
a) A few firms are in perfect competition b) Imperfect competition makes it difficult for firms to do business c) a single firm supplies all the output d) The government supplies all buyers with the product
Which would have no effect on the demand for motorcycles?
a. A change in tastes b. A change in the cost of steel c. A change in the price of gas d. A change in the prices of cars