Which of the following goods would see the largest decline in demand during a recession?
A) automobiles B) clothing C) food D) haircuts
A
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For a given elasticity of supply, the more ________ the demand for the good, the share of the tax paid by the buyers is ________.
A) inelastic; larger B) inelastic; smaller C) elastic; larger D) elastic; smaller E) elastic; the same
If the errors are heteroskedastic, then
A) the OLS estimator is still BLUE as long as the regressors are nonrandom. B) the usual formula cannot be used for the OLS estimator. C) your model becomes overidentified. D) the OLS estimator is not BLUE.
In the absence of government intervention, find the equilibrium price (PC) and Quantity (QC) being exchanged in the antifreeze market?
Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows: MPB = 10.0 – 0.5Q MPC = MSC = 1.0 + 0.4Q MSB = 10.0 –1.1Q, whereMPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.
Which of the following is NOT true of utility?
A. It represents the want-satisfying power of a good. B. The utility that a good provides depends on a consumer's preferences. C. Utility can be measured objectively. D. It is measured using a representative unit called a util.