Correlation of the regression error across observations
A) results in incorrect OLS standard errors.
B) makes the OLS estimator inconsistent, but not unbiased.
C) results in correct OLS standard errors if heteroskedasticity-robust standard errors are used.
D) is not a problem in cross-sections since the data can always be "reshuffled."
Answer: A
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People will buy more of an inferior good when their income decreases
Indicate whether the statement is true or false
The difference between Gross Domestic Income (GDI) and Gross Domestic Product (GDP) is that
A. GDP is always smaller than GDI. B. GDP is GDI less indirect business taxes and depreciation. C. GDI is GDP less indirect business taxes and depreciation. D. GDI is equal to GDP.
In the above figure, the long-run cost curve between points C and D illustrates
A. diseconomies of scale. B. diminishing marginal product. C. constant returns to scale. D. economies of scale.
The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit
Indicate whether the statement is true or false