Under imperfect multicollinearity
A) the OLS estimator cannot be computed.
B) two or more of the regressors are highly correlated.
C) the OLS estimator is biased even in samples of n > 100.
D) the error terms are highly, but not perfectly, correlated.
Answer: B
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The marginal product of capital indicates ________. Therefore the MPK curve is also ________
A) the quantity of capital supplied for a given rental price; the equilibrium price of capital B) the quantity of capital demanded for a given rental price; the demand curve of capital C) the quantity of capital demanded for a given rental price; the equilibrium price of capital D) the quantity of capital supplied for a given rental price; the supply curve of capital E) none of the above
According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly
A) 50; 40 B) 25; 10 C) 2; 2/5 D) 1/2; 2 1/2