During a period of disinflation the purchasing power of the dollar _____.
Fill in the blank(s) with the appropriate word(s).
declines
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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.
What are the characteristics of the perfectly competitive market?
Exclusion of which of the following tends to understate the true level of unemployment in the economy?
a. Children. b. Retired persons. c. Students. d. People who do not want to work. e. Discouraged workers.
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second, and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. If the interest rate is 7 percent, what is the net present value of purchasing the tractor?
A. $6,764 B. $18,362 C. $9,362 D. None of the statements associated with this question are correct.