THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 90

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x) and the number of hours they spend connected to the internet each month (y) .The data yield the following statistics:
,
,
,
,
-Compute the error sum of squares.

• A)116.399
• B)458.962
• C)712.082
• D)688.188

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing and able to sell at various prices.

Consumer Surplus

The difference in the total amount consumers are capable of paying for a good or service versus what they really pay.

Producer Surplus

The divergence between what producers expect to get for a good or service and the actual compensation they receive.

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved in a market.