Suppose That for a Time-Series Model with One Predictor, You

question 89

Multiple Choice

Suppose that for a time-series model with one predictor, you compute a Durbin-Watson statistic D = 1.409.Assume that n = 30 and α = 0.01.Then your decision is to ______.

• A)fail to reject the null hypothesis D = 0
• B)reject the null hypothesis D = 0
• C)fail to reject the null hypothesis ρ = 0
• D)reject the null hypothesis ρ = 0
• E)fail to reject the null hypothesis ρ > 0

Calculate the firm's optimal level of labor employment based on marginal revenue product and labor cost.

Understand the concept of economic rent and its determinants.

Evaluate the effects of changes in input prices on the optimal combination of inputs.

Analyze the impact of the number of variable inputs on the elasticity of labor demand.

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Definitions:

Tables

Arrangements of data in rows and columns that systematically display information.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.

Total Output

Total output refers to the total value of all goods and services produced in an economy over a specific period.

Specialization

The process by which individuals or entities focus on producing a single or a few products or services, leading to increased efficiency and productivity in the economy.