Exam 1: Introduction

A regression estimates that Q = 35 - 0.1 * X, where Q is the quit rate, X is the number of employees at the firm, and the firm sizes in the data set range from 50 to 100. If the firm has 350 employees then

If there are costs associated with employee turnover, and to reduce these costs, a firm increases the wage it pays its employees, then

In Job X, the employer gets a gross benefit of $600 a week from employing a worker (this is the highest wage the employer will pay). The worker is willing to work for the employer if paid $400 a week or more. Which of the following is Pareto efficient?

Public goods are

Which of these is an example of the FAILURE of the market to achieve economic efficiency?

Which of the following is a positive statement?

Cross-sectional data concerns

Which of the following is NOT a characteristic of a typical positive economic model?

A government contractor hires a worker to help build a road for an annual wage of $50,000. The worker's annual output is worth $60,000. If the worker did not have this job, the worker would have produced $40,000 a year in an alternative job and would have been paid $30,000 a year. The real cost of using this worker to build the road is

Which of the following will NOT prevent a mutually beneficial transaction from occurring?

It has been said that "Paul will rarely complain about a plan that takes money from Peter to pay Paul." This suggests that redistributional transactions are usually

A regression estimates that a worker's hourly productivity (P), measured in units of output, is related to hourly wage (W) as follows: Pi = 4.5 + 0.2Wi. This indicates that

A regression of Y = a + bX yields values of a = 4.0 and b = -2.7. This indicates that the slope of the regression line is

Multiple regression analysis uses

Economists generally assume that workers maximize

In a world without scarcity

The most widely used method of estimating a regression line for a data set involves selecting the line

Which of the following best illustrates an externality?

If the slope of a regression line is negative, then an increase in the independent variable will cause

A regression estimates that Q = 35 - 0.1 * X, where Q is the quit rate, X is the number of employees at the firm. Both t-statistics are greater than two, and the firm sizes range from 50 to 100. This indicates that doubling the number of employees from 50 to 100 will reduce the quit rate by