Which of the following indicators will always improve when more variables are added to a regression equation? A) the magnitudes of the coefficients B) the t-test C) R2 D) the standard errors of the coefficients ANSWER C
Date: September 9th, 2020
An incumbent’s threat to use limit pricing if a firm enters the market A) is credible if the firms have identical costs and market demand supports both firms. B) is credible if the firms have different costs and market demand won’t support both firms. C) is not credible if the firms have different costs and […]
Date: September 9th, 2020
The Equivalent Variation for an increase in the price of a good is A) the reduction in a consumer’s income necessary to harm the consumer by as much as the price increase. B) the increase in a consumer’s income necessary to eliminate the consumer’s harm from a price increase. C) the change in consumer surplus […]
Date: September 9th, 2020
When the R2 of a regression equation is very high, it indicates that A) all the coefficients are statistically significant. B) the intercept term has no economic meaning. C) a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. D) there is a good […]
Date: September 9th, 2020
Giving presents on Christmas does NOT generate a deadweight loss if A) all gift are money. B) everybody gets exactly want she wants. C) nobody can be made better off by returning the gift and purchasing a different one. D) All of the above. ANSWER D
Date: September 9th, 2020
Which of the following is NOT an assumption of the initial Cournot Oligopoly Model? A) Market lasts for only one period. B) Firms act simultaneously. C) Firms have same cost functions. D) Firms produce differentiated products. ANSWER D
Date: September 9th, 2020
The above figure shows the long-run expansion path. With an increase in the wage rate, the long run expansion path will A) remain unchanged. B) shift up. C) shift down. D) become flatter. ANSWER B
Date: September 9th, 2020
Which of the following are reasons why Social Security is compulsory? a. A pay-as-you-go system needs new contributors to maintain solvency. b. A pay-as-you go system cannot let older individuals opt out of benefits. c. The adverse selection problem. d. all of the above e. a and c ANSWER e
Date: September 9th, 2020
If firms have different costs and market demand only supports the quantity the incumbent produces, then the incumbent’s threat to use limit pricing A) is credible. B) is not credible. C) would be illegal. D) is unable to be determined with the information given. ANSWER D
Date: September 9th, 2020
In the kinked demand curve model, the demand curve is ________ for price increases and ________ for price decreases. A) unit elastic; relatively elastic B) relatively inelastic; relatively elastic C) relatively elastic; relatively inelastic D) perfectly elastic; perfectly inelastic ANSWER C
Date: September 9th, 2020
