Which of the below is true?
a. A price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market.
b. A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market.
c. Both price floors and price ceilings reduce the quantity exchanged in the market

Which situation is most likely to exhibit diminishing marginal returns to labor?

A) a factory that obtains a new machine for every new worker hired B) a factory that hires more workers and never increases the amount of machinery C) a factory that increases the amount of machinery and holds the number of worker constant D) None of these situations will result in diminishing marginal returns to labor.

In Ordinary Least Squares Regression, the gap between the value of the dependent variable and the predicted value is called

A) the error term. B) the minimizing coefficient. C) the residual. D) the explanatory variable.