If we focus only on consistency, it is necessarily better to use IV than OLS if the correlation between z and u is smaller than that between x and u.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: If we focus only on consistency, it is not necessarily better to use IV than OLS if the correlation between z and u is smaller than that between x and u.
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If government spending is $650 billion while government revenue is $950 billion, the government is said to have a
A) $300 billion budget surplus. B) $300 billion budget deficit. C) $1,600 billion budget balance. D) $950 billion budget deficit.
"Sharp contractions in a country's output and employment invariably result from a crisis in which the country suddenly loses access to all foreign sources of funds." Explain how the current account identity necessitates these contractions
What will be an ideal response?
Thomas Edison once complained that he was not making a profit selling light bulbs because his plants were operating 25 percent below capacity. He estimated that he could increase output 25 percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign market at a price below what he called the "cost of production." We can deduce that Edison really meant
a. Marginal cost was below average cost but less than marginal revenue. b. Average cost exceeded variable cost, which exceeded marginal revenue. c. Variable cost exceeded fixed cost but was less than marginal revenue. d. Marginal cost was above average cost but greater than marginal revenue.
Standardized tests are used in efforts to make schools more accountable.
A. True B. False C. Uncertain