Which of the following assumptions is required for obtaining unbiased random effect estimators?
A. The idiosyncratic errors are heteroskedastic.
B. The unobserved effect is independent of all explanatory variables in all time periods.
C. The idiosyncratic errors are serially correlated.
D. The unobserved effect is correlated with the explanatory variables.
Answer: B
You might also like to view...
All points on the firm's expansion path
a. give the firm the maximum possible profit. b. minimize the firm's cost of producing some level of output. c. have the same long-run average cost. d. make the marginal product of labor equal to the marginal product of capital.
Use the following graph for a monopolistically competitive firm to answer the next question.
In the short run, this monopolistically competitive firm will set price at
A. $65 and produce 35 units of output. B. $55 and produce 45 units of output. C. $50 and produce 35 units of output. D. $52 and produce 50 units of output.
A monopolistically competitive firm shuts down in the short run if ________
A) marginal revenue equals marginal cost B) total revenues do not cover variable costs C) marginal revenue covers average fixed costs D) average total cost exceeds price
State some of the policies adopted by the U.S. government to check petroleum prices