According to the simple quantity theory of money, which of the following variables are considered either constant or relatively stable?
A) V and Y
B) Y and Ms
C) P and Ms
D) P and Y
A
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How does the decreasing use of DVD players affect the market for prerecorded DVDs?
A) The demand curve for prerecorded DVDs shifts to the left. B) The quantity of prerecorded DVDs demanded decreases. C) The quantity of prerecorded DVDs demanded increases. D) The demand curve for prerecorded DVDs shifts to the right.
For state residents, interest on most bonds issued by their state government is
A) exempt from state and federal income taxes. B) exempt from state, but not from federal, income taxes. C) exempt from federal, but not from state, income taxes. D) subject to both state and federal income taxes.
Consider a regression with two variables, in which X1i is the variable of interest and X2i is the control variable. Conditional mean independence requires
A) E(ui|X1i, X2i) = E(ui|X2i) B) E(ui|X1i, X2i) = E(ui|X1i) C) E(ui|X1i) = E(ui|X2i) D) E(ui) = E(ui|X2i)
A corporation has been steadily losing money on one of its product lines. The factory used to produce that brand cost $20 million to build. The firm now is considering an offer to buy that factory for $15 million. Which of the following statements about the decision to sell or not is correct?
a. The firm should turn down the purchase offer because the factory cost more than $15 million to build. b. The $20 million spent on the factory is a sunk cost that should not affect the decision. c. The $20 million spent on the factory is an implicit cost that should be included in the decision. d. The firm should sell the factory only if it can reduce its costs elsewhere by $5 million. e. The firm's opportunity cost would be $35 million if it decides to sell the factory.