Real GDP is calculated because
a. it is a much better measure of economic behavior than nominal GDP
b. the value of the dollar is increasing
c. it allows us to make comparisons between countries
d. nominal GDP has no theoretical foundation
e. nominal GDP is corrected for inflation
A
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Securitization is a process of asset transformation that involves a number of different financial institutions working together. These financial institutions are known collectively as the
A) transformers. B) amalgamation. C) movers and shakers. D) shadow banking system.
When a resource is being depleted and becomes scarce, the market's way of encouraging conservation is for the price of the resource to rise, without any government intervention
a. True b. False Indicate whether the statement is true or false
A test for heteroskedasticty can be significant if _____.?
A. ?the Breusch-Pagan test results in a large p-value B. ?the White test results in a large p-value C. ?the functional form of the regression model is misspecified D. the regression model includes too many independent variables
Suppose a developing country is falling further behind the developed countries that it neighbors. As an economic consultant, you are called to look at its policies to recommend changes. If you saw all of the following on your visit, which of them could be an explanation for the slow growth in the economy?
A. You see that the roads, bridges, and ports are in great shape thanks to the work of the World Bank. B. You see that the central bank does not pay attention to what the elected officials want. C. You see that new companies must bribe local officials to move their exports to the docks. D. You see that literacy rates rival those of its developed neighbors.