High profits in some risky industries attract additional entrepreneurs to those industries.
Answer the following statement true (T) or false (F)
True
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When the government makes a firm the exclusive legal provider of a good or service, it grants the firm
A) a network externality. B) a copyright. C) a quota. D) a public franchise.
In terms of their economic effects, which of the following policies toward pollution are most similar to one another?
a. regulation and corrective taxes b. regulation and tradable pollution permits c. corrective taxes and tradable pollution permits d. All of these policies produce the same economic effects.
Suppose a policy intervention is correlated not just with level differences among units but is also correlated with trend differences. Which of the following analysis would be the most appropriate?
A. Fixed effects B. First-differenced C. Heterogenous trend D. Random effects.
Use the following graph of the demand for noodles to answer the question below.
Refer to the three demand curves for noodles and assume noodles are an inferior good. Which of the following would shift the demand for noodles from D1 to D2?
A. an increase in consumer incomes B. a decrease in consumer incomes C. a decrease in the price of noodles D. an increase in the price of noodles