When your multiple regression function includes a single omitted variable regressor, then
A) use a two-sided alternative hypothesis to check the influence of all included variables.
B) the estimator for your included regressors will be biased if at least one of the included variables is correlated with the omitted variable.
C) the estimator for your included regressors will always be biased.
D) lower the critical value to 1.645 from 1.96 in a two-sided alternative hypothesis to test the significance of the coefficients of the included variables.
Answer: B
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Imposing a unit excise tax on the final sale of a good or service can be displayed graphically as
A) a vertical shift upward of the demand curve. B) a vertical shift upward of the supply curve. C) a vertical shift downward of the demand curve. D) a vertical shift downward of the supply curve.
As table manufacturing company produces more tables, the average total cost of each table produced increases. This is because:
a. Total fixed costs are decreasing as more tables are produced b. There is economies of scale c. There is diseconomies of scale d. Total variable cost is decreasing as more clubs are produced.
Total cost is calculated as
a. average fixed cost plus average variable cost b. fixed cost plus variable cost c. the additional cost of the last unit produced d. marginal cost plus variable cost e. marginal cost plus fixed cost
Draw a graph illustrating the relationship between the demand curve of the perfectly competitive firm and the perfectly competitive industry. Label all curves and axes correctly.
What will be an ideal response?