Import restrictions usually benefit domestic producers at the expense of domestic consumers
a. True
b. False
A
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You have to worry about perfect multicollinearity in the multiple regression model because
A) many economic variables are perfectly correlated. B) the OLS estimator is no longer BLUE. C) the OLS estimator cannot be computed in this situation. D) in real life, economic variables change together all the time.
Recent research suggested that there are large health benefits from consuming cooked tomatoes. Holding other things constant, this will cause
a. The demand curve for tomatoes to shift to the right b. The demand curve for tomatoes to shift to the left c. The supply curve for tomatoes to shift to the right d. The supply curve for tomatoes to shift to the left
If a central bank announced that it was going to decrease inflation by 5%, people revised their inflation expectations downward by 4%, and the central bank only lowered inflation by 1%, the short run Phillips curve would shift
a. right and unemployment would rise. b. right and unemployment would fall. c. left and unemployment would rise. d. left and unemployment would fall.
Technological innovation is not subject to diminishing marginal returns because: a. it can be used by workers across the economy at a low marginal cost
b. it can result in a rightward shift of the aggregate production function of an economy. c. it can result in a rightward shift of the production possibilities frontier of an economy. d. it can be used by skilled as well as unskilled workers across the economy.