OLS is biased and inconsistent when applied to a structural equation in a simultaneous equations system.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: OLS is biased and inconsistent when applied to a structural equation in a simultaneous equations system.
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The entry of new firms into a monopolistically competitive industry will cause the long-run equilibrium price to rise.
Answer the following statement true (T) or false (F)
There are many corn farmers, each of whom produces the same product. The corn market can best be classified as
A. Monopoly. B. Monopolistic competition. C. Perfect competition. D. Oligopoly.
If the production possibilities curve is a straight line:
A. the two products will sell at the same market prices. B. economic resources are perfectly substitutable between the production of the two products. C. the two products are equally important to consumers. D. equal quantities of the two products will be produced at each possible point on the curve.
If the interest rate is 10%, at the end of two years, the value of $100 invested now is
A. $100/1.1. B. $100/1.12. C. $121. D. $120.