Problems caused by stochastic trends include all of the following with the exception of
A) the estimator of an AR(1) is biased towards zero if it's true value is one.
B) the model can no longer be estimated by OLS.
C) t-statistics on regression coefficients can have a nonnormal distribution, even in large samples.
D) the presence of spurious regression..
Ans: B) the model can no longer be estimated by OLS.
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Who benefits from a tariff on a good?
A) domestic consumers of the good B) foreign governments C) domestic producers of the good D) foreign producers of the good
One of the shortcomings of the government's method of measuring unemployment tends to make the official unemployment rate an overestimate of the unemployment problem:
A) people working less than twenty hours a week are counted as unemployed. B) people seeking part-time jobs are counted as fully unemployed. C) people who have given up looking for work are counted as fully unemployed. D) "discouraged workers" aren't counted as unemployed.
The rate of production that maximizes the positive difference between total revenues and total costs is the
A) profit-maximizing rate of production. B) rate of production at which marginal revenue equals marginal product. C) rate of production at which marginal revenue equals average revenue. D) rate of production at which average revenue equals average total cost.
As the price of capital falls, the quantity of capital that producers are willing and able to offer falls
a. True b. False Indicate whether the statement is true or false