Errors-in-variables bias
A) is only a problem in small samples.
B) arises from error in the measurement of the independent variable.
C) becomes larger as the variance in the explanatory variable increases relative to the error variance.
D) is particularly severe when the source is an error in the measurement of the dependent variable.
Answer: B
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Ricky is in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods
A) as small as possible; all B) equal; all C) equal; normal D) maximized; all
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.30 per minute. What is the highest fixed fee Always There Wireless could charge without losing the low-demand consumers?
A. $28.13 B. $56.26 C. $24.50 D. $49.00
Banks advertise
a. the real interest rate, which is how fast the dollar value of savings grows. b. the real interest rate, which is how fast the purchasing power of savings grows. c. the nominal interest rate, which is how fast the dollar value of savings grows. d. the nominal interest rate, which is how fast the purchasing power of savings grows.
A monopolistic competitor would face a demand curve with a
A) positive slope. B) negative slope. C) constant slope. D) slope equal to 0.