In the presence of heteroskedasticity, the usual OLS estimates of:
A. standard errors are valid, whereas the t statistics and F statistics are invalid.
B. t statistics are valid, but the standard errors and F statistics are invalid.
C. F statistics are valid, but the standard errors and t statistics are invalid.
D. standard errors, t statistics, and F statistics are invalid.
Answer: D
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The CPI bias arises from all of the following items except ________
A. the introduction of new goods and services B. the improved quality of goods C. the goods and services bought by poor people D. consumers' responses to price changes
Under a negative income tax program,
a. the government guarantees a minimum level of family income. b. a family must pay income taxes on its welfare check. c. a family receives a stated amount of money from the government plus its members can keep all income earned through work. d. the government reduces the welfare payment by any income earned through work. e. a family's income is lower if its members work.
With average cost pricing, the monopolist
A) earns no accounting profit. B) produces where P = MC. C) earns a normal rate of return for its shareholders. D) does not cover opportunity costs.
The competitive firm's long-run supply curve
a. is always perfectly horizontal. b. includes only that part of the long-run marginal cost curve that lies above long-run average cost. c. includes only that part of the long-run marginal cost curve that is sloping upwards. d. is identical to its long-run average cost curve.