If an individual borrows $100 at an annual rate of interest of 5%, how much interest will he have to pay at the end of a year?
A) $5
B) $10
C) $20
D) $50
Answer: A) $5
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If the MU of half gallon of milk is $3.50 and the MU of gallon of milk is $3.25, and they both sell for the same price, we would expect consumers to
A. increase their purchases of gallons of milk. B. increase their purchases of half gallons of milk. C. not change their purchasing habits. D. buy only gallons of milk.
MPP could never be negative
Indicate whether the statement is true or false
Which of the following statements is true?
A. When explanatory variables are not strictly exogenous, the t test for serial correlation is valid. B. When explanatory variables are not strictly exogenous, the Durbin Watson test for serial correlation is valid. C. Breusch-Godfrey test can be used to check for second order serial correlation. D. White test can be used to check for second order serial correlation.
A good economic model
A. describes the real world completely and in detail. B. captures the essential relationships of the problem under consideration. C. cannot be refuted. D. captures all relationships about the problem under consideration.