Which of the following statements is true?
A. Corner solutions always satisfy the tangency condition.
B. Interior solutions may or may not satisfy the tangency condition.
C. Interior solutions always satisfy the tangency condition.
D. Whenever the consumer purchases good X but not good Y, then MRSXY ? PX/PY at the chosen bundle.
C. Interior solutions always satisfy the tangency condition.
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The historical record for the United States over the last 100 years shows
A) mostly positive economic growth, though the Great Depression caused actual GDP to dip well below potential GDP. B) economic growth for about half the years and economic decline for the other half. C) growth until 1970 and then a period of constant per person real GDP. D) continuous economic growth for each year, although at different rates, throughout the entire century.
An autoregression is a regression
A) of a dependent variable on lags of regressors. B) that allows for the errors to be correlated. C) model that relates a time series variable to its past values. D) to predict sales in a certain industry.
In some parts of the United States, sugar beets are grown and harvested. The process of producing usable sugar from the beets generates foul-smelling smoke. A government policy that limits the emission of smoke by sugar-beet-processing firms is an example of
a. a market-based policy. b. a command-and-control policy. c. tradable pollution permits. d. transaction costs.
The intended use of TARP funds was to
A. support the FDIC. B. increase consumers’ disposable income. C. fund “shovel-ready” projects. D. purchase unwanted securities.