A beneficial technological change enhances the production of cranberries. At the same time, scientists discover the health benefits of cranberries. This will result in:
What will be an ideal response?
an increase in the equilibrium quantity and an uncertain impact on the equilibrium price of cranberries.
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During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise
Suppose that the conditional variance is var(ui|Xi) = ?h(Xi) where ? is a constant and h is a known function. The WLS estimator is
A) the same as the OLS estimator since the function is known B) can only be calculated if you have at least 100 observations C) the estimator obtained by first dividing the dependent variable and regressor by the square root of h and then regressing this modified dependent variable on the modified regressor using OLS D) the estimator obtained by first dividing the dependent variable and regressor by h and then regressing this modified dependent variable on the modified regressor using OLS
Prices of European goods are rising faster than prices of similar goods in the United States. Consequently Europeans substitute American goods for European goods and the euro depreciates. This phenomenon is the basis of
a. Ricardo's Law. b. comparative advantage. c. absolute advantage. d. purchasing power parity.
Prior to World War II most consumers in the United States:
A. paid for catastrophic illness out of their own pockets but owned medical insurance for routine medical care. B. had no medical insurance of any type. C. owned medical insurance for catastrophic illness but paid for routine medical care out of their own pockets. D. owned medical insurance covering both catastrophic illness and routine medical care.