Which of the following is TRUE about product markets?
A. Goods and services flow from households to firms.
B. Factors (land, labor, capital, and entrepreneurial ability) flow from firms to households.
C. Goods and services flow from firms to households.
D. Factors (land, labor, capital, and entrepreneurial ability) flow from households to firms.
Answer: C
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Positive externalities ______
a. are not important economically b. should be reduced through subsidiziation c. are undersupplied by unfettered markets d. can be ignored
Consider a situation where economic theory suggests that you impose certain restrictions on your estimated multiple regression function
These may involve the equality of parameters, such as the returns to education and on the job training in earnings functions, or the sum of coefficients, such as constant returns to scale in a production function. To test the validity of your restrictions, you have your statistical package calculate the corresponding F-statistic. Find the critical value from the F-distribution at the 5% and 1% level, and comment whether or not you will reject the null hypothesis in each of the following cases. (a) number of observations: 152; number of restrictions: 3; F-statistic: 3.21 (b) number of observations: 1,732; number of restrictions:7; F-statistic: 4.92 (c) number of observations: 63; number of restrictions: 1; F-statistic: 2.47 (d) number of observations: 4,000; number of restrictions: 5; F-statistic: 1.82 (e) Explain why you can use the Fq,? distribution to compute the critical values in (a)-(d). What will be an ideal response?
At a Nash equilibrium: a. each firm is said to be doing as well as it can, regardless of the actions of its competitor. b. each firm is said to be doing as well as it can, given the actions of its competitor
c. firms always choose strategies in order to maximize the social welfare. d. firms always choose strategies to avoid the worst possible outcome.
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.