A measurement error occurs in a regression model when _____.
A. the observed value of a variable used in the model differs from its actual value
B. the dependent variable is binary
C. the partial effect of an independent variable depends on unobserved factors
D. the model includes more than two independent variables
Answer: A
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________ refer to the ordinary fluctuations of real GDP around its long-run trend
Fill in the blank(s) with correct word
________ analysis by economists refers to the attempt to answer questions such as should a tax be imposed
A) Positive B) Negative C) Normative D) Investigative
In terms of efficiency, any point on a production possibilities frontier is as good another
a. True b. False Indicate whether the statement is true or false
During the Great Depression, many industrial countries tried protecting domestic jobs by raising tariffs. Economic theory would suggest that the result would be
A) success for only the countries that raised tariffs first. B) success for firms that had a comparative advantage in manufactured goods rather than agricultural goods. C) reduced exports and volume of trade for everyone. D) increased incomes in the countries that pursued this policy.