What Created the Consensus That States Should Provide Services to Citizens,the

question 12

Multiple Choice

What created the consensus that states should provide services to citizens,the "welfare state"?

• A)an acceptance of communism among Western Europe's political leaders
• B)accounting showing that such services would be cheaper than privately provided services
• C)money from the United States specifically for such services
• D)a desire to increase the power of government
• E)a general appreciation for the sacrifices ordinary people had made during the war

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Definitions:

Two-Stage Regression

A statistical analysis method used when there are indirect causal relationships, involving first regressing an independent variable on an instrumenting variable, then the outcome on the fitted values from the first stage.

CAPM

The Capital Asset Pricing Model, a theory describing the relationship between systematic risk and expected return for assets, particularly stocks.

Market Beta

A measure of the volatility of a security or a portfolio in comparison to the market as a whole.

Explanatory Power

The ability of a statistical model to account for the variability of a given data set, explaining how well the model represents the data observed.