Imagine you regressed earnings of individuals on a constant, a binary variable ("Male") which takes on the value 1 for males and is 0 otherwise, and another binary variable ("Female") which takes on the value 1 for females and is 0 oth
Because females typically earn less than males, you would expect
A) the coefficient for Male to have a positive sign, and for Female a negative sign.
B) both coefficients to be the same distance from the constant, one above and the other below.
C) none of the OLS estimators to exist because there is perfect multicollinearity.
D) this to yield a difference in means statistic.
Answer: C
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Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes
The net effect of a devaluation on economic growth depends on the mix of capital and labor utilized in the nation's export industries
Indicate whether the statement is true or false
Game theory is an especially useful model for analysis in the following types of markets:
a. perfect competition. b. monopolistic competition. c. oligopoly. d. monopoly.
Consumers of the exportable product in the exporting country are most likely to gain when trade is based on
A. increasing-cost industries. B. technological differences. C. external scale economies. D. different factor endowments.