An economy that interacts with other economies is called:
A. an open economy.
B. a closed economy.
C. an international economy.
D. a global economy.
A. an open economy.
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In the case of heterogeneous causal effects, the following is not true:
A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent. B) OLS estimation using heteroskedasticity-robust standard errors is identical to TSLS. C) the OLS estimator is properly interpreted as a consistent estimator of the average causal effect in the population being studied. D) the TSLS estimator in general is not a consistent estimator of the average causal effect if an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual.
If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong, it is said to have the virtue of falsifiability
Indicate whether the statement is true or false
Sellers in a monopolistically competitive market may be regarded as “monopolists” of their ______.
a. average costs b. advertising c. trade networks d. own brands
Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) The firm could exit the industry in the long run. B) If the firm does not exit the industry in the long run its demand curve will shift to the left. C) If the firm does not exit the industry in the long run its demand curve will shift to the right. D) If the firm remains in the industry in the long run it will break even.