Which of the following is true?
A. In ordinary least squares estimation, each observation is given a different weight.
B. In weighted least squares estimation, each observation is given an identical weight.
C. In weighted least squares estimation, less weight is given to observations with a higher error variance.
D. In ordinary least squares estimation, less weight is given to observations with a lower error variance.
Answer: C
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According to Adam Smith, what is the primary source of a nation's wealth?
a. The amount of gold and silver in the government's possession. b. A spirit of cooperation in which people share according to their means. c. Strong central planning authorities. d. The people's ability to produce products and trade in free markets.
Karl Marx believed the central figures in an industrial economy were the
A. labor union leaders. B. heads of the ruling political party. C. capitalists. D. stock market speculators.
If the units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. The marginal product of the fourth unit is:
a. 1. b. 37. c. 2. d. 39.
Price ceilings set below the equilibrium create:
A. externalities. B. unemployment. C. shortages. D. surpluses.