Identification fails when there are more included endogenous variables than excluded exogenous variables in the structural equation.

Answer the following statement true (T) or false (F)


True

Rationale: The rank order condition for identification specifies that we need at least as many excluded exogenous variables as there are included endogenous explanatory variables in the structural equation.

Economics

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Which economist introduced the simple trade model and the concept of trade based on comparative advantage?

What will be an ideal response?

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Exhibit 30-1

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Refer to Exhibit 30-1. If the exhibit represents a negative externality situation, the triangle ABC is representative of

A. social failure. B. optimal failure. C. market failure. D. socially optimal output. E. none of the above

Economics

A profit-maximizing price searcher will expand output to the point where

a. total revenue equals total cost. b. marginal revenue equals marginal cost. c. price equals average total cost. d. price equals marginal cost.

Economics

Disposable personal income is

a. the total income earned by a nation's permanent residents. b. the total income earned by a nation's residents in the production of goods and services. c. the income that households and non-corporate businesses receive. d. the income that households and businesses have remaining after satisfying their obligations to the government.

Economics