In the Baumol-Tobin analysis of transactions demand, scale economies imply that an increase in real income increases the quantity of money demanded ________, while an increase in the price level increases the quantity of money demanded ________
A) proportionately; less than proportionately
B) more than proportionately; proportionately
C) less than proportionately; proportionately
D) proportionately; more than proportionately
C
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The input demand functions that can be derived from cost functions are referred to as "contingent" demand functions because the functions:
a. assume input costs are constant. b. express input demand as a function of output. c. depend on the assumption of profit maximization. d. assume constant returns to scale in production.
Consider the following regression equation: y= 
0+ 1x1 + … +
src="https://sciemce.com/media/2/ppg__cognero__Ch_07_Multiple_Regression_Analysis_with_Qualitative_Information__media__719eb76b-8341-45e9-9b56-8551fff4b40c.PNG" style="vertical-align:middle;" />kxk + u In which of the following cases, is ‘y' a discrete variable? A. y indicates the gross domestic product of a country B. y indicates the total volume of rainfall during a year C. y indicates household consumption expenditure D. y indicates the number of children in a family
The form of risk to the investor associated with the asset unexpectedly falling in price is called
A. complete risk. B. overall risk. C. market risk. D. default risk.
A single-price monopoly is economically inefficient because, at the profit-maximizing output:
A. marginal revenue exceeds product price at all profitable levels of production. B. monopolists always price their products on the basis of the ability of consumers to pay rather than on costs of production. C. MC > P. D. society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.