Question 1

Omitted variables

Accepted Answer

A) can cause hypothesis tests to be unreliable. 
B) require multiple regression analyses to find. 
C) are usually those with t-statistics less than the critical value. 
D) are usually outside the confidence interval. 
A) can cause hypothesis tests to be unreliable. 
B) require multiple regression analyses to find. 
C) are usually those with t-statistics less than the critical value. 
D) are usually outside the confidence interval.

Question 2

If the demand curve for a good always has unitary price elasticity, what does this imply about consumer behavior?

Accepted Answer

A) Consumers do not react to a price change. 
B) Consumers will spend a constant total amount on the good. 
C) Consumers are irrational. 
D) Consumers do not obey the Law of Demand. 
A) Consumers do not react to a price change. 
B) Consumers will spend a constant total amount on the good. 
C) Consumers are irrational. 
D) Consumers do not obey the Law of Demand.

Question 3

What is the meaning of the statement "correlation does not mean causation"?

Accepted Answer

Just because two variables are correlate

Question 4

If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good

Accepted Answer

A) as not very sensitive to price. 
B) as not very sensitive to the quantity they demand. 
C) as very sensitive to price. 
D) as elastic. 
A) as not very sensitive to price. 
B) as not very sensitive to the quantity they demand. 
C) as very sensitive to price. 
D) as elastic.

Question 5

If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then

Accepted Answer

A) we accept the null hypothesis at a 95% confidence level. 
B) we reject the null hypothesis at a 95% confidence level. 
C) we will be wrong less than 5% of the time if we accept the null hypothesis. 
D) we will be wrong 95% of the time if we reject the null hypothesis. 
A) we accept the null hypothesis at a 95% confidence level. 
B) we reject the null hypothesis at a 95% confidence level. 
C) we will be wrong less than 5% of the time if we accept the null hypothesis. 
D) we will be wrong 95% of the time if we reject the null hypothesis.

Omitted variables

If the demand curve for a good always has unitary price elasticity, what does this imply about consumer behavior?

What is the meaning of the statement "correlation does not mean causation"?

If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good

If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 3: Empirical Methods for Demand Analysis

Omitted variables

If the demand curve for a good always has unitary price elasticity, what does this imply about consumer behavior?

What is the meaning of the statement "correlation does not mean causation"?

If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good

If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters