Instrumental variables cannot be used for estimating a regression equation if the regression model suffers from the measurement error problem.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: The instrumental variables procedure can be used for estimation if the regression model suffers from the measurement error problem.
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Which of the following would most likely increase the supply of beef?
a. lower prices of grains used to feed cattle b. lower prices for chicken, a substitute for beef c. new medical research suggesting that beef causes more serious health problems than was previously thought d. an increase in the cost of transporting beef products to the consumer market
If the supply for loanable funds shifts to the left, then the equilibrium interest rate
a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. rises and the quantity of loanable funds falls. d. falls and the quantity of loanable funds rises.
If a government increases its budget deficit, then interest rates
a. rise and the real exchange rate appreciates. b. fall and the real exchange rate depreciates. c. rise and the real exchange rate depreciates. d. fall and the real exchange rate appreciates.
Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labor. The price of labor is $10 per unit and the price of capital is $2 per unit.If at the current level of production the marginal product of labor is 4 while the marginal product of capital is 2, then in order to minimize your costs of production you should use
A. more of both inputs. B. the same amount of both inputs. C. more capital and less labor. D. more labor and less capital.