The parameters of an econometric model _____.
A. include all unobserved factors affecting the variable being studied
B. describe the strength of the relationship between the variable under study and the factors affecting it
C. refer to the explanatory variables included in the model
D. refer to the predictions that can be made using the model
Answer: B
You might also like to view...
The Federal Open Market Committee:
A. is responsible for monitoring how goods and services are being sold on the open market. B. is responsible for regulatory oversight and implementation of monetary policy of regional banks. C. is the most important policy-making body of the Federal Reserve. D. includes all regional bank presidents and the Board of Governors.
A decrease in the price of resources will cause the aggregate supply curve to
A. shift outward. B. shift inward. C. become flatter. D. become steeper.
Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, then
A) the United States has a comparative advantage in corn production. B) Mexico has a comparative advantage in corn production. C) the United States cannot gain from trade with Mexico. D) the United States has a comparative advantage in auto production.
During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos
A. are a normal good and sushi is an inferior good. B. are an inferior good and sushi is a normal good. C. are an economic bad and sushi is an economic good. D. and sushi are complements.