Refer to the graph shown. If the firm wants to produce 900 units of output, it should use the plant size represented by:
A. SATC1.
B. SATC2.
C. SATC3.
D. SATC4.
Answer: C
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The sum of all the goods and services produced by an economy over a given time period is known as its
a. total wealth. b. functional distribution. c. total capital. d. total product.
The rule-of-thumb for checking for weak instruments is as follows: for the case of a single endogenous regressor,
A) a first stage F must be statistically significant to indicate a strong instrument. B) a first stage F > 1.96 indicates that the instruments are weak. C) the t-statistic on each of the instruments must exceed at least 1.64. D) a first stage F < 10 indicates that the instruments are weak.
In the short run, which of the following is FALSE about the shutdown point?
A) Total revenue is equal to total fixed cost. B) Total revenue is equal to total variable cost. C) Product price is equal to the minimum average variable cost. D) Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.
A one-dollar tax reduction has the same effect as a one-dollar increase in government purchases
a. True b. False Indicate whether the statement is true or false