Demand shifters do not include the
A. consumer's tastes and preferences.
B. the price of the other related goods.
C. price of the good.
D. consumer's expectations about future prices of the good.
Answer: C
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Risk-based deposit insurance premiums have recently been __________ and this is expected to __________ the moral hazard problem of deposit insurance
A) abolished; alleviate B) abolished; worsen C) established; alleviate D) established; worsen
Prior to 1840, most businesses were
A) family-owned. B) corporate in structure. C) vertically integrated. D) collections of partnerships.
Consider the following simple regression model: y = 
0+ 1x1+ u. In order to obtain consistent estimators of
src="https://sciemce.com/media/2/ppg__cognero__Ch_15_Instrumental_Variables_Estimation_and_Two_Strage_Least_Squares__media__d15d8088-6a26-4e76-8757-cf8a8c5ae58c.PNG" style="vertical-align:middle;" />0and 1, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 
0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable.
A. dummy
B. instrumental
C. lagged dependent
D. random
Monopolistic competition is characterized by excess capacity because:
A. firms charge a price that is less than marginal cost. B. firms produce at an output level less than the least-cost output. C. the demand for a product is perfectly elastic in this type of industry. D. firms are always profitable in the long run.