Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period
Producers in which nation have an incentive to specialize in orange production? A) The U.S.
B) Canada
C) Both of the above have an incentive to specialize in orange production.
D) Neither of the above have an incentive to specialize in orange production.
A
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Under an assumption of monetary neutrality, a change in the nominal money supply has
A) no effect on the price level. B) a less than proportionate effect on the price level. C) a proportionate effect on the price level. D) a more than proportionate effect on the price level.
A tax levied on purchases of a particular good or service
A) is illegal because it is discriminatory. B) always leads to a reduction in total tax revenues. C) always leads to an increase in total tax revenues. D) is an excise tax.
If you included both time and entity fixed effects in the regression model which includes a constant, then
A) one of the explanatory variables needs to be excluded to avoid perfect multicollinearity. B) you can use the "before and after" specification even for T > 2. C) you must exclude one of the entity binary variables and one of the time binary variables for the OLS estimator to exist. D) the OLS estimator no longer exists.
When the government bans a good it:
A. creates a more efficient solution than any other to the nonexcludability problem. B. is an easy, but often ineffective, solution to the nonexcludability problem. C. increases surplus more than any other solution to the nonexcludability problem. D. is the easiest and most effective solution to the nonexcludability problem.