Which of the following assumptions is required for obtaining unbiased fixed effect estimators?
A. The errors are heteroskedastic.
B. The errors are serially correlated.
C. The explanatory variables are strictly exogenous.
D. The unobserved effect is correlated with the explanatory variables.
Answer: C
You might also like to view...
For a perfectly competitive firm, no matter how much the firm produces, price always equals
A) marginal product. B) average total cost. C) minimum average total cost. D) marginal revenue.
If a firm produces 10 units, TC=$100 . When the firm increase its output to 15 units, TC= $150 . The firm's variable costs equal to
a. $25 b. $0 c. $50 d. $100
In order to maximize profits, a firm that can sell all it wants without affecting price should produce
a. where average variable costs are minimized. b. where marginal cost is equal to average variable costs. c. where marginal cost is equal to price. d. where marginal cost is a minimum.
Which of the following is a positive statement?
a. An unemployment rate of 7 percent or higher is a national disgrace. b. Unemployment is a less important problem than inflation. c. When the national unemployment rate is 7 percent, the unemployment rate for inner-city youth is often close to 40 percent. d. Unemployment and inflation are equally important problems. e. An inflation rate of 7 percent is too high.