Assume That We Trying to Explain Infant Mortality as a Function

question 4

Multiple Choice

Assume that we trying to explain infant mortality as a function of GDP per capita in a sample of countries from around the world. Which of the following factors could most likely lead to endogeneity?

• A) Whether the country has been at war
• B) Population size
• C) (Geographic) size of country
• D) Use of proportional representation system

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Definitions:

Collusive Agreement

A secret or illegal cooperation or agreement between parties to limit competition and manipulate market conditions to their advantage.

Cartel

An association of independent businesses or countries that work together to control prices and limit competition in a specific market.

Collusion

An agreement between two or more parties, often covertly, to limit competition and manipulate markets for mutual benefit.

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