Consider the following regression equation: graduate = 
+ 
female + 
style="vertical-align:middle;" />score + u where graduate is a dummy variable (1 if the person graduated from college, and 0 otherwise), female is a dummy variable (1 if the person is female, and 0 otherwise), and score is the college admission test score.
What does 
measure?
A. The predicted difference in probability of graduating between male and female students, all else equal.
B. The predicted change in probability of graduating when score increases by 1, all else equal.
C. The predicted probability of graduating for female students.
D. The predicted probability of graduating for male students.
Answer: A
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The relationship between the nominal interest rate, the real interest rate, and the inflation rate is that the
A) real interest rate is equal to the nominal interest rate plus the inflation rate. B) nominal interest rate is equal to the real interest rate plus the inflation rate. C) real interest rate is equal to the nominal interest rate multiplied by the inflation rate. D) nominal interest rate is equal to the real interest rate minus the inflation rate. E) nominal interest rate is equal to the real interest rate divided by the inflation rate.
When goldsmiths issued receipts to gold owners, and those gold receipts circulated while gold stayed in the goldsmiths' safes,
A) the gold receipts were considered money because they were used as a means of payment. B) an infant banking system developed in sixteenth century Europe. C) fiat money was created. D) money was invented. E) Both A and B are correct.
When external benefits exist, which of the following can produce the efficient amount of output?
I. vouchers II. private subsidies III. taxes IV. marketable permits. A) I and II only B) I and III only C) II and IV only D) III and IV only
The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.