The sample regression line estimated by OLS
A) has an intercept that is equal to zero.
B) is the same as the population regression line.
C) cannot have negative and positive slopes.
D) is the line that minimizes the sum of squared prediction mistakes.
Answer: D) is the line that minimizes the sum of squared prediction mistakes.
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The term market always refers to
a. an arrangement in which an auctioneer plays at least a limited role in setting prices. b. an arrangement in which buyers and sellers meet at a specific time and place. c. a group of buyers and sellers of a particular good or service. d. a single buyer and seller of a particular good or service.
The short-run break-even price is the point at which
A) price is less than marginal cost. B) marginal cost, average total cost and marginal revenue are all equal. C) average variable cost is at a minimum. D) marginal cost, price and average variable cost are all equal.
What do most economists believe concerning the relation between the price level and real output?
Producer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.