Interpreting the intercept in a sample regression function is
A) not reasonable because you never observe values of the explanatory variables around the origin.
B) reasonable because under certain conditions the estimator is BLUE.
C) reasonable if your sample contains values of Xi around the origin.
D) not reasonable because economists are interested in the effect of a change in X on the change in Y.
Ans: C) reasonable if your sample contains values of Xi around the origin.
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What factors do some who promote the profitability of elaborate trading strategies leave out?
A) the effect of trading costs and taxes B) the difficulty of calculating the return on investment C) ignoring the effect of dividends D) not accounting for both capital gains and dividends
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a. corporation b. partnership c. sole proprietorship d. nonprofit organization e. limited partnership corporation
While corporations bear the statutory incidence of corporate income tax, the economic incidence is likely borne by:
A. shareholders. B. employees. C. customers. D. All of these likely bear some of the economic incidence.
Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?
a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agricultural chemicals