Which of the following highlights a requirement of a good instrumental variable?
A. It should be included in and endogenous to the equation of interest.
B. It should be included in and exogenous to the equation of interest.
C. It should be omitted from and exogenous to the equation of interest.
D. It should be omitted from and endogenous to the equation of interest.
Answer: C
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Indicate whether the statement is true or false
In oral auctions, the price that the winner pays depends on
a. The winner's willingness to pay b. The highest willingness to pay among the losers c. The lowest willingness to pay among the losers d. None of the above
The level of real GDP and the price level that equate the aggregate quantity demanded and the aggregate quantity supplied is known as macroequilibrium
Indicate whether the statement is true or false
The short-run equilibrium for a monopolistically competitive firm is at P = $28.47, ATC = $22.13, and MC = MR = $17.47. Which of the following is true?
A. Average cost must be rising. B. Additional firms will be attracted into the industry. C. The firm could raise price and increase profits. D. The firm could lower price and increase profits.