Consistency of feasible generalized least square estimators requires the error term to be correlated with lags of the explanatory variable.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: Consistency of feasible generalized least square estimators requires the error term to be uncorrelated with lags of the explanatory variable. Correlation will lead to inconsistent estimates.
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The ethnocentric view that most new products are developed and introduced in the US is a key weakness in the ______ theory.
Fill in the blank(s) with the appropriate word(s).
The role of platform firms is to
A. reduce the amount of information in the price system. B. reduce the amount of market competition among sellers. C. lower transaction costs for buyers and sellers. D. reduce the level of voluntary exchanges in markets.
Assume the Cookie Monster, who eats only cookies, has an income of $200 a week and that the price of a cookie is $2. If the price doubles, he cuts his consumption in half. How much is his elasticity of demand for cookies?
What will be an ideal response?
Consumer Reports' reviews of products:
A. reduce an inefficiency in the market. B. allow more transactions that are valuable to buyers and sellers to take place. C. credibly provide more information to market participants. D. All of these statements are true.