Which of the following is true of dummy variables?

A. A dummy variable always takes a value less than 1.
B. A dummy variable always takes a value higher than 1.
C. A dummy variable takes a value of 0 or 1.
D. A dummy variable takes a value of 1 or 10.


Answer: C

Economics

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Suppose that a firm in an industry subject to diminishing returns to scale is initially in long run equilibrium. Which of the following will not be part of the industry adjustment process to a permanent increase in demand? a. Some firms will temporarily make economic profits

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Before about 1975

a. any federal deficits were at least 5 percent of GDP. b. most federal deficits were less than 2 percent of GDP. c. the federal government never ran deficits. d. the federal government always ran a surplus. e. any federal deficits were at least 7 percent of GDP.

Economics

Fiscal federalism refers to

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Economics