If the error term is correlated with any of the independent variables, the OLS estimators are:
A. biased and consistent.
B. unbiased and inconsistent.
C. biased and inconsistent.
D. unbiased and consistent.
Answer: C
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Which of the following is true?
A) The market demand curve for a public good has a positive slope. B) The market demand curve for a private good has a positive slope. C) The market demand curve for a public good is arrived at by the horizontal sum of individual demand curves. D) The market demand curve for a public good is arrived at by the vertical sum of individual demand curves.
A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1000 at a price of $10,000. If the interest rate in the economy is now 12.5% a year and you want to sell the bond, the maximum price that you can get for it is:
A. $7,500 B. $8,000 C. $9,750 D. $12,500