Positive economic analysis
A. involves value judgments.
B. concerns what ought to happen.
C. addresses factual issues.
D. is subjective.
C. addresses factual issues.
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In the regression model Yi = β0 + β1Xi + β2Di + β3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, β3
A) indicates the slope of the regression when D=1. B) has a standard error that is not normally distributed even in large samples since D is not a normally distributed variable. C) indicates the difference in the slopes of the two regressions. D) has no meaning since (Xi × Di) = 0 when Di = 0.
In a perfectly competitive market, if P < MC, then
A) too little output is being produced. B) too much output is being produced. C) production is efficient, as the firm is earning profits. D) the firm is paying a price for resources that is too high.
The principal innovation that increases the safety of bank deposits is
a. computerized accounting systems. b. credit cards. c. automatic teller machines. d. deposit insurance.
China has a trade deficit in services, while India has a trade surplus in services
Indicate whether the statement is true or false