During a recession, spending on ________ tends to fall more dramatically than spending on ________
A) necessities; luxuries
B) durable goods; nondurable goods
C) nondurable goods; durable goods
D) food; cars
Answer: B
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The binary dependent variable model is an example of a
A) regression model, which has as a regressor, among others, a binary variable. B) model that cannot be estimated by OLS. C) limited dependent variable model. D) model where the left-hand variable is measured in base 2.
The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called
a. human capital. b. physical capital. c. natural resources. d. technological knowledge.
Which of the following is NOT a reason people tolerate tariffs and quotas?
A) Their jobs depend on tariffs and quotas. B) Costs may be hidden and hard to quantify. C) Costs of the policy are spread over a large number of people. D) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.
Answer the question on the basis of the following information: Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per unit prices of these three goods are A = $2, B = $3, and C = $1. (Advanced
analysis) Refer to the information. If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then the GDP price index in the current year is: A. 205.5. B. 255.5. C. 39.3. D. 100.