The error term in a regression equation is said to exhibit homoskedasticty if _____.
A. it has zero conditional mean
B. it has the same variance for all values of the explanatory variable
C. it has the same value for all values of the explanatory variable
D. if the error term has a value of one given any value of the explanatory variable
Answer: B
You might also like to view...
Suppose the demand for specialty car license plates is perfectly inelastic and the supply curve for specialty license plates is upward sloping. A tax is imposed on specialty license plates. Which of the following is true?
A) Drivers pay the smallest share of the tax. B) Drivers pay none of the tax. C) Drivers pay all of the tax. D) The government pays all of the tax. E) The government collects nothing in tax revenues.
Refer to Figure 11-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) an improvement in technology. C) diminishing returns to labor. D) a decline in capital per worker.
Firms in perfectly competitive markets are confined to making profits in the short run, but never a loss.
Answer the following statement true (T) or false (F)
According to the Keynesian IS-LM model, what is the effect of each of the following on output, the real interest rate, employment, and the price level? Distinguish between the short run and the long run.(a)Expected inflation rises.(b)Wealth increases.(c)Labor supply decreases due to a change in demographics.(d)The future marginal product of capital decreases.
What will be an ideal response?