If an economy is operating __________ its institutional production possibilities frontier, it is producing __________ output than it would be at full employment

The sample average of the OLS residuals is

A) some positive number since OLS uses squares. B) zero. C) unobservable since the population regression function is unknown. D) dependent on whether the explanatory variable is mostly positive or negative.

Which of the following is not generally considered a failing of market economies?

a. Market economies can have severe swings from boom to bust. b. Market economies tend to underprovide public goods. c. Market economies tend to promote equity at the expense of efficiency. d. Market economies can misallocate resources when property rights are ill defined.