The temptation of imperfectly-monitored workers to shirk their responsibilities is
a. an example of the moral hazard problem.
b. an example of the adverse selection problem.
c. an example of screening.
d. an example of signaling.
a
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The Gauss-Markov Theorem proves that
A) the OLS estimator is t distributed. B) the OLS estimator has the smallest mean square error. C) the OLS estimator is unbiased. D) with homoskedastic errors, the OLS estimator has the smallest variance in the class of linear and unbiased estimators, conditional on X1,…, Xn.
The infant-industry argument about tariffs implies that
a. it is unfair to levy tariffs on items intended for use by infants. b. tariffs should be levied on foreign products that compete with new domestic industries only in the short run. c. if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run. d. permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.