Supposed that you are interested in estimating country-level maternal mortality rate (mmrt) based just on the gross domestic product per capita (gdppct) and literacy rate (lrt) and you find that countries that have unusually high (for the given levels of gdppc and lr) mmr in one period also have unusually high mmr in the next period. Which of the following assumption for time series analysis does not hold?
A. No perfect collinearity.
B. Zero conditional mean.
C. Homoskedasticity.
D. No serial correlation.
Answer: D
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A monopoly that is maximizing profits never operates in the ________ portion of the demand curve
A) unitary elastic B) elastic C) inelastic D) horizontal
If you take $500 out of a savings deposit and put it into a checking account, the immediate effect (do not consider the money multiplier):
a. M1 rises, M2 remains the same, and the monetary base remains the same. b. M1 falls, M2 falls, and the monetary base remains the same. c. M1 rises, M2 rises, and the monetary base remains the same. d. M1, M2, and the monetary base fall. e. M1, M2, and the monetary base remain the same.
If the rate of inflation is 6 percent, the prime rate of interest is 9 percent, and the unemployment rate is 6 percent, how much is the misery index?
What will be an ideal response?
Other things being equal, if a firm's marginal cost curve shifts upward at all output levels:
A. the average total cost curve remains unchanged at all output levels. B. the average variable cost curve remains unchanged at all output levels. C. the average fixed cost curve remains unchanged at all output levels. D. All of these