In the case of the simple regression model Yi = ?0 + ?1Xi + ui, i = 1, …, n, when X and u are correlated, then
A) the OLS estimator is biased in small samples only.
B) OLS and TSLS produce the same estimate.
C) X is exogenous.
D) the OLS estimator is inconsistent.
Answer: D) the OLS estimator is inconsistent.
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Paying an above-equilibrium wage rate might reduce unit labor costs by:
A. permitting the firm to attract lower-quality labor. B. increasing the opportunity cost to workers of being fired for shirking. C. increasing voluntary worker turnover. D. increasing the supply of labor.
The concept of opportunity cost is based on the principle of
A. scarcity. B. profit. C. need. D. consumption.
The regular earnings profile of an individual throughout his or her lifetime is
A) the Lorenz curve. B) the age-earnings cycle. C) wealth. D) income-in-kind.
The fiscal year
A. Is the 12-month period used for federal government accounting purposes. B. Is the period during which the government must balance the budget. C. Begins in January for the federal government. D. None of the choices are correct.