Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)The use of 2SLS is applicable to simultaneous equations model with at most two equations.
• B)Identification of simultaneous equations with three or more equations is based on matrix algebra.
• C)2SLS method used in the estimation of simultaneous equations is an example of a system estimation method.
• D)The maximum number of equations permissible for a simultaneous equations model is four.

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Definitions:

Trades

Exchanges of goods, services, or financial assets between individuals, businesses, or countries.

Opportunity Cost

The value of the next highest valued alternative that is given up when making a decision.

Alternatives Not Chosen

Options that are forsaken when a decision is made in favor of another option.