Consider the following regression equation: 
. Which of the following indicates a functional form misspecification in E(y|x)?
A. Ordinary Least Squares estimates equal Weighted Least Squares estimates.
B. Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude.
C. Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude.
D. Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.
Answer: D
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Suppose the table below describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47The monopolist's marginal revenue from selling the 4th unit of output is less than $7 because:
A. demand is perfectly elastic. B. marginal cost is greater than $3. C. the consumer only pays $4 for the 4th unit. D. it has to charge $1 less for each of the first 3 units of output.
Which of the following will decrease the amount of a good that is traded in the market?
a. price floors and price ceilings b. excise taxes, price floors, and subsidies c. excise taxes d. subsidies e. price floors, price ceilings, and excise taxes
Which of the following trade rounds was started in 2001 but has never been settled even in 2012 and whose goals were aimed at lowering tariffs on a wide range of industrial and agricultural products?
a. Uruguay b. Switzerland c. Doha d. All rounds have been completed.
The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?
A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.