A consumer price index that has had the impact of having food and energy prices removed is the
A. CPI.
B. core CPI.
C. PCE.
D. Producer Price Index.
Answer: B
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What will be an ideal response?
Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?
A. The error term has an expected value of 1 given any value of the explanatory variable. B. The regression equation is linear in the explained and explanatory variables. C. The sample outcomes on the explanatory variable are all the same value. D. The error term has the same variance given any value of the explanatory variable.
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is economic profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
Refer to the above table. Assume the consumer spends his entire income. The price of a hotdog is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
A. 0 hotdogs and 2.5 movies B. 3 hotdogs and 2 movies C. 4 hotdogs and 4 movies D. 2 hotdogs and 2 movies