If someone asked you to predict the price of gas in a month, and you decided to just guess by adding a few cents to the current price of gas, which you know, your answer would exhibit:
A. anchoring.
B. time inconsistency.
C. rational expectations.
D. transitivity.
A. anchoring.
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List three ways government can reduce depletion of an endangered resource. Which of these ways requires the least amount of management, monitoring, and bureaucracy?
What will be an ideal response?
To test joint linear hypotheses in the multiple regression model, you need to
A) compare the sums of squared residuals from the restricted and unrestricted model. B) use the heteroskedasticity-robust F-statistic. C) use several t-statistics and perform tests using the standard normal distribution. D) compare the adjusted R2 for the model which imposes the restrictions, and the unrestricted model.
Which of the following is definitely true if the production possibilities curve shifts outward?
A. Aggregate supply has increased. B. Population has increased. C. GDP per capita has increased. D. Inflation has increased.
When the exchange rate falls, imports ________ and exports ________
A) increase; decrease B) increase; increase C) decrease; do not change D) decrease; decrease E) decrease; increase