The Chinese economic reforms of 1978 opened China to international trade and investment. These reforms gave China access to new capital and technology, which
A) allowed China to decrease its capital-labor ratio and increase labor productivity.
B) increased China's total factor productivity and standard of living.
C) accelerated Chinese productivity to a level where Chinese real GDP per capita is now on par with that in the United States.
D) rapidly increased productivity in China and convinced Chinese officials to expand the reforms to include complete privatization of its financial system.
B
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Which of the following is an example of an intermediate good?
A. An antique car sold to the highest bidder B. A pair of skis sold by a sporting goods retailer to a skier C. The lumber produced by Boise Cascade and sold to a builder of old houses D. A share of IBM stock
In the case of errors-in-variables bias, the precise size and direction of the bias depend on
A) the sample size in general. B) the correlation between the measured variable and the measurement error. C) the size of the regression R2. D) whether the good in question is price elastic.
GLS involves
A) writing the model in differences and estimating it by OLS, using HAC standard errors. B) truncating the sample at both ends of the period, then estimating by OLS using HAC standard errors. C) checking the AIC rather than the BIC in choosing the maximum lag-length of the regressors. D) transforming the regression model so that the errors are homoskedastic and serially uncorrelated, and then estimating the transformed regression model by OLS.
A rise in the real interest rate r
a. creates income and substitution effects that reduce C0. b. creates income effects that reduce C0, substitution effects that increase C0. c. creates income effects that increase C0, substitution effects that reduce C0. d. creates income and substitution effects that increase C0.