If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
A) identical to the TSLS estimator.
B) BLUE.
C) inconsistent.
D) different from the OLS estimator in the presence of heteroskedasticity.
Answer: B
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The marginal revenue product of a resource is:
A. the marginal product of the resource divided by the price of the product it helps to produce. B. the price of the product times the price of the resource. C. larger when the product price is larger. D. larger when the marginal product is smaller.
Company towns are often decried as monopsonists. Why was it unlikely that another employer would move into a company town?
A) The marginal workers available in the company town had low marginal revenue product. B) The existing monopsonist had a first-mover advantage. C) The marginal workers available in the company town would demand a wage higher than that obtained at the existing monopsonist. D) Any of the above.
Most of the spending by the federal government is for transfer payments and interest
Indicate whether the statement is true or false
Government spending influences spending indirectly
a. True b. False Indicate whether the statement is true or false