Adding a time trend can make an explanatory variable more significant if:
A. the dependent and independent variables have similar kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line.
B. the dependent and independent variables have similar kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line.
C. the dependent and independent variables have different kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line.
D. the dependent and independent variables have different kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line.
Answer: D
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Refer to the above figure. The market equilibrium quantity is Q1. Point Q2 represents the optimal amount of production. This indicates that there is
A) a public good which should be produced. B) regressive taxation of the product. C) a positive externality. D) a negative externality.
A decrease in the price of domestically produced nuclear reactors will be reflected in Select one:
a. both the GDP deflator and the consumer price index.
b. neither the GDP deflator nor the consumer price index.
c. the GDP deflator but not in the consumer price index.
d. the consumer price index but not in the GDP deflator.
If elasticity of demand is 1 and elasticity of supply is 0, what percentage of a 10 percent tax will be borne by consumers?
A. 10 percent. B. 50 percent. C. 0 percent. D. 100 percent.
General Equilibrium Assumptions:
What will be an ideal response?