The variance of a random walk process decreases as a linear function of time.?
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: The variance of a random walk process increases as a linear function of time.?
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An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________
A) shift down and to the left; be unchanged B) shift down and to the left; shift left C) shift up and to the right; be unchanged D) shift up and to the right; shift left
In the short run, a decrease in the market demand will cause a(n) ________ in the market equilibrium price and a perfectly competitive firm's demand and marginal revenue curve to shift ________.
A) increase; upward B) decrease; upward C) increase; downward D) decrease; downward
Arable land, water, machinery, and a professional baseball player are all considered scarce economic _______________ used in the production of goods and services.
Fill in the blank(s) with the appropriate word(s).
If the price of Coke rises by 5 percent and the sales of Pepsi go up by 10 percent, we can conclude that
A. Both goods are normal goods. B. Both goods are substitute goods because the cross-price elasticity is +0.5. C. Both goods are substitute goods because the cross-price elasticity is +2. D. The sign on the cross-price elasticity will be negative.