When there are omitted variables in the regression, which are determinants of the dependent variable, then
A) you cannot measure the effect of the omitted variable, but the estimator of your included variable(s) is (are) unaffected.
B) this has no effect on the estimator of your included variable because the other variable is not included.
C) this will always bias the OLS estimator of the included variable.
D) the OLS estimator is biased if the omitted variable is correlated with the included variable.
Answer: D
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Answer the following statement true (T) or false (F)
As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect. B) proves that the fax machine is an inferior good. C) proves that the fax machine is a luxury good. D) is an example of a positive network externality. E) is an example of a negative network externality.
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A. increases for each additional worker. B. remains constant across workers. C. decreases for each additional worker. D. is zero when profits are maximized.
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a. True b. False Indicate whether the statement is true or false