If the errors are heteroskedastic, then
A) the OLS estimator is still BLUE as long as the regressors are nonrandom.
B) the usual formula cannot be used for the OLS estimator.
C) your model becomes overidentified.
D) the OLS estimator is not BLUE.
Answer: D
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The table gives some data on the supply of roses in a small town. When the price rises from $15 a dozen to $25 a dozen, the elasticity of supply is ________
A) 1.25 B) 5.00 C) 0.20 D) 0.80
Suppose new oil reserves are discovered that were not previously known. What happens to the user cost of oil?
A) Decreases B) Increases C) Remains the same D) May increase or decrease, depending on the discount rate
Consider the same monopoly situation as in the previous question. The firm's profit will be
a. 1,760 b. 1,660 c. 2,264 d. 6,728
If there is an inflationary gap in the economy, discretionary fiscal policy would likely involve an action to
A) shift the aggregate demand curve to the right. B) shift the aggregate demand curve to the left. C) shift both the aggregate demand curve and aggregate supply curve to the right. D) shift both the aggregate demand curve and aggregate supply curve to the left.