You try to explain the number of IBM shares traded in the stock market per day in 2005. As an independent variable you choose the closing price of the share. This is an example of
A) simultaneous causality.
B) invalid inference due to a small sample size.
C) sample selection bias since you should analyze more than one stock.
D) a situation where homoskedasticity-only standard errors should be used since you only analyze one company.
Answer: A) simultaneous causality.
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The ________ is the most popular dominant currency that countries fix their currency against
A) Swiss franc B) U.S. Dollar C) SDR D) Euro
Microsoft is accused of which anti-competitive practice?
a. interlocking directorates b. illegal "bundling" of products c. exclusive contracts d. predatory pricing
Below is a table showing the maximum amount five potential buyers are willing to pay for a car.
a) What is the quantity demanded if cars sell for $10,000 each? b) Under conditions of perfect competition, how many cars are bought if the marginal cost of producing a car is $25,000? c) How many cars are bought if the marginal cost of producing a car falls to $20,000?
In the market for saving, the price is the:
A. relative price. B. nominal interest rate. C. inflation rate. D. real interest rate.