"The plan to create private accounts in Social Security will reduce benefits for some workers," is an example of a ________ statement, while "Social Security will be better if the private accounts are allowed" is an example of a ________ statement.
A. monetary policy; fiscal policy
B. positive; normative
C. normative; positive
D. structural policy; fiscal policy
Answer: B
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The "before and after" specification, binary variable specification, and "entity-demeaned" specification produce identical OLS estimates
A) as long as there are observations for more than two time periods. B) if you use the heteroskedasticity-robust option in your regression program. C) for the case of more than 100 observations. D) as long as T = 2 and the intercept is excluded from the "before and after" specification.
A deadweight loss results from the imposition of a tax on a good because the tax
a. induces the government to increase its expenditures. b. reduces the quantity of exchanges between buyers and sellers. c. causes a disequilibrium in the market. d. imposes a loss on buyers that is greater than the loss to sellers.
Suppose land suitable for wheat production is highly inelastic. An increase in the demand for wheat bread will most likely
a. cause the prices of bread and wheat to increase but not affect the incomes paid to owners of wheat-growing land. b. shift the demand curve for bread to the right and the supply curve for wheat to the left. c. raise the price of land suitable for wheat production. d. depress the incomes of owners of wheat growing land.
According to the Classical model, an excess supply of labor would drive up wages to a new equilibrium level and therefore unemployment would not persist.
Answer the following statement true (T) or false (F)