Added satisfaction declines as a consumer acquires additional units of a given product
What is the law of diminishing marginal utility
100
A measure of spread in the distribution of a random variable
What is variance
100
Costs associated with an individual's use of his or her own time and other resources in pursuit of a particular activity versus alternatives
What are implicit costs
100
For observation i, the difference between the actual value and the predicted value
What is the residual
200
Supply and price are __________ related
What is positively related
200
To maximize satisfaction, the consumer should allocate his or her money income so that the last dollar spent on each product yields the same amount of marginal utility
What is the utility-maximinzing rule/consumer equilibrium
200
A sampling scheme whereby each observation is drawn at random from the population. In particular, no unit is more likely to be selected than any other unit, and each draw is independent of all other draws
What is random sampling
200
Excess demand for a good
What is a shortage
200
The assumption that all other factors affecting x on y are held constant
What is ceteris paribus
300
A measurement of the value of final goods and services produced within the borders of a country during a specific period of time, usually a year
What is real GDP (gross domestic product)
300
A period long enough to adjust the quantities of all the resources that it employs, including plant capacity
What is the long run
300
A well-defined group of people, firms, cities, etc. that is the focus of a statistical analysis
What is a population
300
For complementary goods, the cross-price elasticity of demand is _____________
What is negative
300
The variable u that represents factors other than x that affect y
What is the error term
400
increases in quantity and quality of natural resources, increases in quantity and quality of human resources, increases in supply of capital goods, technological improvements
What are determinants of growth
400
Requires that goods be produced in the least costly way; P=Minimum ATC
What is productive efficiency
400
A probability distribution commonly used in statistics for modeling a population. Has a bell shape
What is a normal distribution
400
A curve that shows all the combinations of inputs that, when used in a technologically efficient way, will produce a certain level of output
What is an isoquant
400
Linear in parameters, E(U|X)=0, Random sample, sample variation in explanatory variables
What are assumptions of the OLS estimator
500
Y = C+I+G+(X-m)
What is the national income model
500
The creation of new products and new production methods destroys the market positions of firms committed to existing products and old ways of doing business
What is creative destruction
500
A statistical test of the null hypothesis against an alternative hypothesis
What is hypothesis testing
500
the Marginal Rate of Technical Substiution= ______________ (equation)