If on-the-job working conditions have improved over time,
a. real GDP will understate the growth rate of real income.
b. real GDP will overstate the growth rate of real income.
c. the GDP deflator will overestimate inflation.
d. real GDP will overstate the growth rate of real income, and the GDP deflator will understate inflation.
A
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Game theory is not useful in understanding perfect competition because in a perfectly competitive market:
A. there are too many firms to be able to model their behavior accurately using game theory. B. no single firm can influence the market price, so firms' decisions are not interdependent. C. the payoffs to firms' choices are unknown. D. each firm only cares about its own profit, so there is no interdependence.
Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton
If the price elasticity of demand for steel is -0.3 in Europe, what is an appropriate value for the price coefficient (b) in a linear demand function Q = a - bP? A) b = 0.9 B) b = -0.9 C) b = 0.1 D) b = -0.1
One of your peers wants to analyze whether or not participating in varsity sports lowers or increases the GPA of students
She decides to collect data from 110 male and female students on their GPA and the number of hours they spend participating in varsity sports. The coefficient in the simple regression function turns out to be significantly negative, using the t-statistic and carrying out the appropriate hypothesis test. Upon reflection, she is concerned that she did not ask the students in her sample whether or not they were female or male. You point out to her that you are more concerned about the effect of omitted variables in her regression, such as the incoming SAT score of the students, and whether or not they are in a major from a high/low grading department. Elaborate on your argument. What will be an ideal response?
If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services. b. P can be regarded as the "overall price level.". c. an increase in the value of money is associated with a decrease in P. d. All of the above are correct.