Measuring important concepts in economics is difficult and some important economic phenomena are still beyond the understanding of economists. Thus economics is called a(n):
a. complex science.
b. social science.
c. inexact science.
d. hard science.
C
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Programs like Medicaid in the United States provide low-income households with medical care, because of the attitude of unfairness associated with the allocation of health care
a. True b. False Indicate whether the statement is true or false
What is the primary goal of phasing out government assistance payments?
a. Providing an incentive to work b. Eliminating income taxes for the working poor c. Balancing work and leisure time d. Establishing a fair poverty line
Which of the following statements is true?
A. The calculated t statistic is valid and efficient in case of a spurious regression. B. If an explanatory variable or a dependent variable is integrated of the order one, the OLS estimators are asymptotically normally distributed. C. An error correction model can be used to study the short-run dynamics in the relationship between the dependent variable and the explanatory variables in a time series model. D. The Dickey-Fuller test can be used to test for heteroskedasticity in the error terms.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase b. decrease c. stay the same d. does not affect profits