Causal Models

question 32

Multiple Choice

Causal models

• A)provide evidence of a causal relationship between an independent variable and the variable to be forecast.
• B)use the average of the most recent data values in the time series as the forecast for the next period.
• C)occur whenever all the independent variables are previous values of the same time series.
• D)relate a time series to other variables that are believed to explain or cause its behavior.

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Definitions:

Relative Costs

The cost of one good or service compared to another, often considered in terms of the opportunity cost of choosing one option over another.

Labor-Productivity

The measure of the amount of goods and services produced by one hour of labor.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to more efficient international trade.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than competitors, leading to more efficient international trade.