The linear probability model contains heteroskedasticity unless _____.
A. the intercept parameter is zero
B. all the slope parameters are positive
C. all the slope parameters are zero
D. the independent variables are binary
Answer: C
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Which statement is TRUE about Mr. McConaughey's marginal utility from spending time with family and friends and breaking a sweat?
A) The marginal utility Mr. McConaughey gets from the first hour of spending time with his family is less than the marginal utility from the first hour of breaking a sweat. B) The marginal utility Mr. McConaughey gets from the third hour of spending time with his family is less than the marginal utility from the fourth hour of breaking a sweat. C) The marginal utility Mr. McConaughey gets from the fourth hour of spending time with his family is greater than the marginal utility from the fourth hour of breaking a sweat. D) The marginal utility Mr. McConaughey gets from the second hour of spending time with his family is greater than the marginal utility from the first hour of breaking a sweat.
The payoff matrix refers to
a. the difference between total revenue and total cost at different price levels b. a listing of the rewards and penalties associated with pursuing various strategies c. the difference between average and marginal cost for the non-competitive firm d. the difference between average and marginal revenue in a non-competitive industry e. the difference between average variable and average total cost to the firm
In order for the price system to have satisfied the exacting requirements for efficiency,
a. MU must equal MC for each and every commodity. b. the average cost of producing each good must be equal to its MU. c. the maximum possible of total economic profit must be produced. d. every consumer's MU will be equal to marginal physical product
A binding minimum wage is a(n) ______ for labor.
Fill in the blank(s) with the appropriate word(s).