In the expression Pr(Y = 1 = ?(?0 + ?1X),
A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function.
B) ?1 cannot be negative since probabilities have to lie between 0 and 1.
C) ?0 cannot be negative since probabilities have to lie between 0 and 1.
D) min (?0 + ?1X) > 0 since probabilities have to lie between 0 and 1.
Answer: A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function.
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Both Keynesians and non-Keynesians now recognize
a. the limitations of automatic stabilizers as a stabilization tool. b. the adverse effects of high marginal tax rates on economic growth. c. the difficulties involved in timing discretionary changes in fiscal policy in a stabilizing manner. d. the highly expansionary impact of budget deficits.
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a. the government b. lawyers c. lotteries d. prices
In the short run, the additional output that results from hiring an additional unit of a variable input is the
A) marginal product. B) average product. C) average variable cost. D) marginal cost.