If Coke and Pepsi are close substitutes, then if:
a. Coke raises its price, so will Pepsi.
b. Coke raises its price, it will not lose customers to Pepsi.
c. Pepsi lowers its price, it will not hurt Coke.
d. Pepsi lowers its price, so will Coke.
e. Coke raises its price, some customers will switch to Pepsi.
e
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The GDP price index can be interpreted as
A) (nominal GDP - real GDP) ÷ 100. B) (real GDP ÷ nominal GDP) × 100. C) (real GDP - nominal GDP) ÷ 100. D) (nominal GDP + real GDP) ÷ 100. E) (nominal GDP ÷ real GDP) × 100.
Which of the following is not a source of monopoly?
a. technologies that allow each of many small firms to produce at the same per-unit costs as one large firm b. patents c. control of crucial inputs d. government licensing requirements
Which of the following statements is true when the dependent variable, y> 0?
A. Taking log of a variable often expands its range. B. Models using log(y) as the dependent variable will satisfy CLM assumptions more closely than models using the level of y. C. Taking log of variables make OLS estimates more sensitive to extreme values. D. Taking logarithmic form of variables make the slope coefficients more responsive to rescaling.
The difference in price between hardback books and paperbacks is primarily explained by differences in production costs.
Answer the following statement true (T) or false (F)