If the Error Term Is Correlated with Any of the Independent

question 19

Multiple Choice

If the error term is correlated with any of the independent variables, the OLS estimators are:

• A)biased and consistent.
• B)unbiased and inconsistent.
• C)biased and inconsistent.
• D)unbiased and consistent.

---

Definitions:

Private Costs

Private costs are the direct costs incurred by individuals or companies as a result of their own production or consumption activities, excluding any external or social costs.

Environmental Costs

Expenses incurred by a company related to the environmental impact of its operations, including waste management, emissions control, and resource conservation.

Conventional

Pertaining to standard or traditional practices, methods, or systems commonly accepted and utilized.

Hidden Environmental Costs

Hidden Environmental Costs are the indirect, often not immediately apparent expenses related to environmental degradation and resource depletion caused by business activities.