Which of the following problems can arise in policy analysis and program evaluation using a multiple linear regression model?
A. There exists homoskedasticity in the model.
B. The model can produce predicted probabilities that are less than zero and greater than one.
C. The model leads to the omitted variable bias as only two independent factors can be included in the model.
D. The model leads to an overestimation of the effect of independent variables on the dependent variable.
Answer: B
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According to your text, what is the significant distinction between the government and the nongovernment sector of society?
A) Government decisions are made by collectives rather than by individuals. B) Government is usually granted the right to coerce adults. C) Government officials pursue the public interest rather than narrow special interests. D) Government takes the long-run view and thus cares for the interests of future generations. E) The government sector is not characterized by competition.
If a company pays a dividend of $2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent,
the price of the company's stock should be ________ per share. A) $3.40 B) $28.57 C) $200.00 D) $340.00
Typically, marginal utility is higher when a person consumes less of a good
Indicate whether the statement is true or false
Many economists now deemphasize capital accumulation as a source of growth because:
A. capital has been defined so narrowly that it has become a less useful concept. B. capital accumulation alone does not necessarily lead to growth. C. capital accumulation no longer affects growth. D. the value of the capital stock no longer depends upon technology and needs of society.