The following will not cause correlation between X and u in the simple regression model:
A) simultaneous causality.
B) omitted variables.
C) irrelevance of the regressor.
D) errors in variables.
Ans: D) errors in variables.
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Refer to the figure above. This country has comparative advantage in
A) X. B) Y. C) both X and Y. D) Can't tell without more information.
One of the reasons communism failed was because:
a. governments ran out of money. b. workers received the same pay whether or not they worked hard. c. there was no unemployment. d. Mao Zedong passed away. e. technological improvements were impossible in a communist economy.
The investment and capital spending boom of the late 1990s most likely resulted in a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Developing countries tend to use ______ production methods.
a. labor-intensive b. capital-intensive c. highly technical d. completely automated