Which of the Following Is Not a Common Cause of Endogeneity

question 8

Multiple Choice

Which of the following is not a common cause of endogeneity?

• A)measurement error
• B)simultaneous equations
• C)omitted variables
• D)continuous variables

---

Definitions:

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in from foreign markets.

Imports

Goods and services brought into a country from abroad for sale.

Exports

Domestically produced goods and services sold in other countries.

Comparative Advantage

A theory in economics that suggests a country should specialize in producing and exporting goods in which it has a lower opportunity cost than its trading partners.