Endogenous variables
A) are correlated with the error term.
B) always appear on the LHS of regression functions.
C) cannot be regressors.
D) are uncorrelated with the error term.
Ans: A) are correlated with the error term.
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An example of a capability considered in the capabilities approach would be:
A. earning a livable wage. B. living free of the fear of violence C. being able to afford a nice home. D. to have the ability to purchase an item you really want.
Suppose you are viewing a graph of the total revenue generated from the sale of bananas. On the horizontal axis, the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. The slope of the line represents
a. b and e b. marginal revenue c. average variable costs d. total revenue e. price
Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:
A. the demand curve to shift to D(A) because some people will stop drinking coffee. B. neither a change in quantity demanded nor a shift in demand. C. the demand curve to shift to D(B) in anticipation of higher future prices. D. the quantity of coffee demanded to decrease, but no shift in the demand curve.
Long-run competitive equilibrium requires:
A. average costs to be zero for all firms in the industry. B. accounting profits to be zero for all firms in the industry. C. economic profits to be zero for all firms in the industry. D. price to be zero for all firms in the industry.