When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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When people say, "government officials act on the basis of the property rights which they perceive," they mean
A) government officials are inherently conservative. B) government officials do not have to be concerned about information being scarce. C) government officials make decisions based on the expected consequences to themselves. D) government officials will ordinarily not confiscate property without due process of law.
The binary variable interaction regression
A) can only be applied when there are two binary variables, but not three or more. B) is the same as testing for differences in means. C) cannot be used with logarithmic regression functions because ln(0) is not defined. D) allows the effect of changing one of the binary independent variables to depend on the value of the other binary variable.
A bank increased its fees for processing personal checks from 18 cents to 24 cents per check. In a statement accompanying the announcement, the bank said that some customers who reduce the number of checks they write would see no change in their overall account fee. What is the implication of this statement for these customers?
a. The price elasticity of demand for check writing is less than one. b. The price elasticity of demand for check writing is greater than one. c. They are indifferent to the check writing fee. d. They have a unit-elastic demand for check writing.
External scale economies are more likely to arise in an industry
A. in which firms readily share technology improvements. B. in which a single firm dominates the market. C. in which a few dominant firms compete aggressively with each other using product prices. D. that is solely export oriented.