The order condition for identification of an equation requires that there should be _____.
A. at least one exogenous explanatory variable in a structural equation
B. at least as many excluded exogenous explanatory variables as there are included endogenous explanatory variables
C. at least as many dummy variables in an equation as there are exogenous explanatory variables
D. as many lagged independent variables in an equation as there are exogenous explanatory variables
Answer: B
You might also like to view...
An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as
A) technological progress. B) absolute progress. C) efficiency progress. D) capital investment.
In fiscal year 2011, the U.S. government ran a deficit of about $1,300 billion. In fiscal year 2012, the government ran a deficit of about $1,087 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.
From 1998 to 2010, the cost of building a nuclear plant increased from $3 billion to $10 billion. If the marginal cost of producing electricity stays the same, then the average fixed cost of producing electricity ________ while the average total cost of producing electricity ________.
A. increases; increases B. decreases; stays the same C. increases; stays the same D. decreases; increases
A perfectly competitive firm maximizes its profit by producing at the point where
A) total revenue equals total cost. B) marginal revenue is equal to marginal cost. C) total revenue is equal to marginal revenue. D) total cost is at its minimum. E) total revenue is at its maximum.