Explanation

• Confidence sets show possible values of estimated parameters.
• For one coefficient, it is an interval (line).
• For two coefficients, it becomes a 2D region.
• That region is typically elliptical in shape.

Last verified on 22-04-2026

Explanation

• Water changes state at specific temperatures.
• At 0°C, water turns into ice (freezing point).
• We use simple present tense for universal scientific facts.
• So the correct verb is “freezes.”

Last verified on 22-04-2026

Explanation

• Unemployment changes with the business cycle in an economy.
• During recessions, economic activity slows down and jobs decrease.
• During expansions, production and employment increase.
• So unemployment moves opposite to economic growth.
• It rises in recessions and falls in expansions.

Last verified on 22-04-2026

Explanation

• A firm should shut down if Average Revenue (AR) is less than Average Variable Cost (AVC) because it cannot cover variable costs.
• In perfect competition or monopoly, AR = Price, so price < AVC is the shutdown rule.

Last verified on 22-04-2026

Explanation

• We use “to + verb” to show reason or purpose.
• Here, “wear light clothes” has the purpose of staying cool.
• So the correct structure is “to keep cool.”
• It is a basic infinitive usage rule in English.

Last verified on 22-04-2026

Explanation

• Economic growth depends on certain basic institutional conditions.
• These include markets, property rights, and monetary exchange systems.
• They help ensure production, trade, and investment stability.
• Fiscal and monetary policy are government tools, not preconditions.

Last verified on 22-04-2026

Explanation

Real GDP per person = Nominal / (Deflator / 100)  

= 18,000 / (110 / 100) = 18,000 / 1.10 = $16,363.6

Last verified on 22-04-2026

Explanation

• Dumping occurs when goods are sold in foreign markets at a price lower than their production cost.
• It is often used to eliminate competitors and gain market control.

Last verified on 22-04-2026

Explanation

• The Kyoto Protocol was adopted in 1997 (Kyoto, Japan).
• It is linked to the United Nations Framework Convention on Climate Change.
• Its main goal is to reduce greenhouse gas emissions.
• This helps in controlling global warming and climate change.

Last verified on 22-04-2026

Explanation

• It explains the relationship between labour input and real GDP.
• When other factors (capital, technology) remain constant, output depends on labour.
• This relationship is called the production function.

Last verified on 22-04-2026