In the case of errors-in-variables bias, the precise size and direction of the bias depend on
A) the sample size in general.
B) the correlation between the measured variable and the measurement error.
C) the size of the regression R2.
D) whether the good in question is price elastic.
Answer: B
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How do economic growth rates affect a nation's standard of living?
What will be an ideal response?
In the last 20 years, which of the following countries has experienced positive economic growth?
A) Russia. B) Zimbabwe. C) Haiti. D) All of the above have seen their economies decline during this period.
Which of the following is an example of a positive statement?
A) Since this good is bad for you, you should not consume it. B) If this good is bad for you, you should not consume it. C) If you consume this good, you will get sick. D) None of the above.
A tax on the buyers of coffee will
a. increase the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. decrease the price of coffee paid by buyers, increase the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee. d. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and increase the equilibrium quantity of coffee.