The faster economic growth is, the
A. steeper the slope of the production possibilities curve.
B. more bowed the production possibilities curve becomes.
C. farther the production possibilities curve shifts out.
D. closer to the origin the production possibilities curve becomes.
Answer: C
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Which of the following is true of the White test?
A. The White test is used to detect the presence of multicollinearity in a linear regression model. B. The White test cannot detect forms of heteroskedasticity that invalidate the usual Ordinary Least Squares standard errors. C. The White test can detect the presence of heteroskedasticty in a linear regression model even if the functional form is misspecified. D. The White test assumes that the square of the error term in a regression model is uncorrelated with all the independent variables, their squares and cross products.
If antitrust legislation is successful, then the monopolistic firm will
A) decrease output and charge a lower price than before. B) increase output and charge a higher price than before. C) increase output and charge a lower price than before. D) decrease output and charge a higher price than before.
If the stock of money is $200 billion, velocity is 5, and the price level is 5, what is income?
A. $8 billion B. $40 billion C. $200 billion D. $5,000 billion
In an oligopoly, producers' agreements to restrict output tend to be unstable because each firm has an incentive to:
A. Produce more than its output quota B. Lower both its price and its output C. Raise its price above the cooperative price D. Establish competitive price and output levels