In the panel regression analysis of beer taxes on traffic deaths, the estimation period is 1982-1988 for the 48 contiguous U.S. states
To test for the significance of entity fixed effects, you should calculate the F-statistic and compare it to the critical value from your Fq,? distribution, where q equals
A) 48.
B) 54.
C) 7.
D) 47.
Answer: D
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Which of the following is a defining characteristic of all perfectly competitive markets?
A. Consumers display strong brand loyalty. B. All firms sell the same standardized product. C. Each firm in the market faces a perfectly inelastic demand curve. D. The market demand curve is perfectly elastic.
Average total costs are
A) total costs divided by total output. B) total output divided by total costs. C) the change in total costs divided by the change in output. D) the change in output divided by the change in total costs.
Suppose that two drug manufacturers represent the only two producers in the industry and further suppose that the companies can spend a lot of money on research to develop new drug treatment. If only one develops a product, they make very high profits, but if they produce similar drugs, their profits are lower given the high research costs and they split the market for their products. But if they both sell their current products and spend little on research, they can still make good profits. The best outcome that they could achieve would be for the two firms to
A. ignore each other’s behavior. B. always conduct research activities. C. form a cartel. D. reach a Nash equilibrium.
.In the short run, which of the following is the most likely effect of an unanticipated move to a more expansionary monetary policy?
What will be an ideal response?