Which of the following statements best describes the outcome of a change in demand?
a. A change in the demand of a good never causes the demand curve for that good to shift.
b. A change in the demand of a good never causes the demand or supply curve for that good to shift.
c. A change in the demand of a good never causes the supply curve for that good to shift.
d. A change in the demand of a good causes the demand and supply curves for that good to shift.
b. A change in the demand of a good never causes the demand or supply curve for that good to shift.
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To test whether or not the population regression function is linear rather than a polynomial of order r,
A) check whether the regression R2 for the polynomial regression is higher than that of the linear regression. B) compare the TSS from both regressions. C) look at the pattern of the coefficients: if they change from positive to negative to positive, etc., then the polynomial regression should be used. D) use the test of (r-1) restrictions using the F-statistic.
Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the manufacturer to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
Which of the following is a major impact of offshoring?
a. Elimination of domestic jobs b. Elimination of jobs in foreign countries c. Creation of jobs in the domestic country d. An increase in the cost of production of domestic firms e. A reduction in the cost of production of foreign firms
The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.