The interest elasticity of money demand is estimated to be
A) small in absolute value.
B) large in absolute value.
C) highly volatile.
D) not statistically different from zero.
A
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Small sample sizes in an experiment
A) biases the estimators of the causal effect. B) may pose a problem because the assumption that errors are normally distributed is dubious for experimental data. C) do not raise threats to the validity of confidence intervals as long as heteroskedasticity-robust standard errors are used. D) may affect confidence intervals but not hypothesis tests.
In discussing discrimination and the wage differences that exist between men and women and between blacks and whites, it has been said that "the disease is political even if the symptom is economic." What does this mean?
a. Wage differences persist because the political system has failed to enact laws to equalize wages among all groups. b. Wage differences exist because of past discrimination on the part of political bodies such as city councils and school boards. c. Wage differences exist because of the differences in the political views of the different groups. d. Wage differences exist because the political system is biased against paying compensating differentials.
When demand is inelastic, an increase in price causes the seller's total revenues to:
A fall to zero. B decrease. C remain the same. D increase.
Which statement is true of the graph shown? 
A. The shut down point of the firm would be at an output more than Q*. B. The marginal cost curve crosses the AFC curve at the lowest point of the AFC curve. C. The marginal cost curve should not cross the AFC while it is falling. D. If an ATC curve was drawn in the graph it would intersect the MC curve but not any other curve.