The model: y* = 0? + x

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A. ARCH model.
B. GARCH model
C. Tobit model
D. logit model

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Answer: C

Economics

Vertical contracts between manufacturers and retailers often aim to

a. Incentivize the retailers 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. Reimburse the retailer for the cost of managing an extended inventory d. All of the above

Which of the following central bank policies will lower the money supply?

a. Buying government securities. b. Lowering the discount rate. c. Selling foreign currency in the foreign exchange market. d. Lowering the reserve ratio. e. None of the above.

Which of the following would be most vulnerable to the tragedy of the commons?

A. Cattle on a ranch B. Restrooms in a restaurant C. Timber on public land D. Apples in Phoebe's apple orchard

Refer to Table 8.5. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $15. To maximize profits, Exotic Fruit should sell __________ fruit basket(s). A) zero B) two C) three D) five