If the error term is correlated with any of the independent variables, the OLS estimators are:
A. biased and consistent.
B. unbiased and inconsistent.
C. biased and inconsistent.
D. unbiased and consistent.
Answer: C
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Would a country with an absolute advantage in the production of all goods and services trade with other countries? Explain
What will be an ideal response?
If the transaction between you and the seller takes place at a price that equals your valuation of the product, then:
a. you realize all the gains from this transaction. b. the gains from this transaction are equally divided between the two of you. c. the entire economic value created by the transaction goes to the seller. d. the economic value created by this transaction is sub-optimal.
Which of the following is descriptive of the law of diminishing marginal utility?
A) The third hamburger consumed provides less utility than the second hamburger consumed. B) The third hamburger is priced higher than the first hamburger. C) As price falls, quantity demanded rises, ceteris paribus. D) The price of a good rises as the costs of producing that good rise. E) none of the above
Which of the following is not considered to be a source of market power for a firm?
A.) Externalities. B.) Patents. C.) Restrictive production agreements. D.) Economies of scale.