?The difference between the LPM model and the logit and probit models is that:
A. ?the LPM assumes constant marginal effects for all the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects.
B. ?the LPM assumes constant marginal effects for some of the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects.
C. ?the LPM assumes constant marginal effects for the dependent variable, while the logit and probit models imply diminishing magnitudes of the partial effects.
D. ?the LPM assumes different marginal effects for all independent variables, while the logit and probit models imply diminishing magnitudes of the marginal effects.
Answer: A
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A positive rate of time preference means that
a. time is relative to consumption b. consumption in the future is more important than consumption today c. consumption today is valued less than consumption in the future d. consumption in the future is valued less than consumption today e. consumption in the future and consumption today are positively related
The production possibilities curve
A. Represents the different quantities of goods society can consume while operating at full employment. B. Tends to increase as the population grows. C. Must shift outward every year. D. Is another name for the aggregate demand curve.
The traditional Phillips Curve suggests a trade-off between:
A. price stability and income equality. B. the level of unemployment and inflation. C. unemployment and income equality. D. economic growth and full employment.
Answer the next question based on the following data. All figures are in billions of dollars.Government purchases$10Consumption115Gross investment35Consumption of fixed capital7Exports11Imports14 This nation's GDP is ________.
A. $163 billion B. $164 billion C. $157 billion D. $171 billion