Experimental effects, such as the Hawthorne effect,
A) generally are not germane in quasi-experiments.
B) typically require instrumental variable estimation in quasi-experiments.
C) can be dealt with using binary variables in quasi-experiments.
D) are the most important threat to internal validity in quasi-experiments.
Answer: A) generally are not germane in quasi-experiments.
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Use the figure below to answer the following question.
What is the amount of consumer surplus after the government imposes the excise tax on the market?
A. $162 B. $486 C. $540 D. $144
Expansionary fiscal policy includes
A) increasing taxes and increasing government purchases. B) lowering interest rates, decreasing taxes and increasing transfer payments. C) decreasing taxes and increasing government expenditures. D) lowering the interest rates, decreasing taxes and decreasing government spending.
When plasma television sets were first introduced prices were high and few firms were in the market. Later, economic profits attracted new firms and the price of plasma televisions fell. This example illustrates
A) a decreasing-cost industry. B) that consumers receive this new technology "free of charge" in the sense that they only have to pay a price for plasma televisions equal to the lowest production cost. C) an industry with a low minimum efficient scale. D) how fickle consumer demands are.
A(n) ________ will shift the short-run industry supply curve of a perfectly competitive industry.
A. increase in the price of an input B. increase in the price of the product C. increase in the demand for the product D. increase in the income of consumers