If a Group of Independent Variables Are Not Significant Individually

question 3

Multiple Choice

If a group of independent variables are not significant individually but are significant as a group at a specified level of significance,this is most likely due to

• A)autocorrelation.
• B)the presence of dummy variables.
• C)the absence of dummy variables.
• D)collinearity.

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Definitions:

Market Supply

The total amount of a specific good or service that is available to consumers, determined by the sum of all individual suppliers' products in the market.

Long Run

A period sufficient for all inputs, including physical capital and labor, to be adjusted in the production process.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of the industry over a period of time.

Marginal Cost Curves

Graphs that depict the cost of producing one additional unit of a good or service, typically showing how costs vary with production volume.