When a good is not excludable but is rival in consumption the:
A. free rider problem may arise.
B. tragedy of the commons may arise.
C. good is likely a private good.
D. good is likely a common resource.
B. tragedy of the commons may arise.
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A short-run decrease in real GDP will
a. increase the price of non-labor inputs, increase input requirements per unit of output, and increase the price level b. increase the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level c. decrease the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level d. increase the price of non-labor inputs, decrease input requirements per unit of output, and increase the price level e. decrease the price of non-labor inputs, increase input requirements per unit of output, and increase the price level
Consider the following regression model: log(y) = 
0 + 1x1 +
style="vertical-align:middle;" />2x12 + 3x3 + u. This model will suffer from functional form misspecification if _____.
A. 0 is omitted from the model
B. u is heteroskedastic
C. x12 is omitted from the model
D. x3 is a binary variable