In an Econometric Model, the Dependent Variable Is

question 9

Multiple Choice

In an econometric model, the dependent variable is

• A) the behavior one is trying to explain.
• B) unchanging across subsamples.
• C) always the wage.
• D) also known as the residual.
• E) unrelated to the independent variables.

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Definitions:

Saving

The act of setting aside a portion of current income for future use, typically by depositing money in savings accounts or investing in securities.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, keeping all other factors constant.

Foreign Portfolio Investment

Investment in financial assets from another country, such as stocks or bonds, which does not provide the investor with direct control over the assets.

GNP

Gross National Product; the total value of all goods and services produced by a country's residents over a specified period, including income from abroad.