The Gap Between the Actual and Predicted Values of a Dependent

question 54

Multiple Choice

The gap between the actual and predicted values of a dependent variable is called

• A)the error term.
• B)an exogenous factor.
• C)the residual.
• D)an endogenous factor.

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Definitions:

Consumer Surplus

The discrepancy between the full amount consumers intend and have the means to pay for a good or service and the amount they genuinely pay.

Blue Jeans

A type of trousers made from denim or dungaree cloth, often considered a symbol of American culture.

Tax

A mandatory monetary fee or different kind of charge placed on a taxpayer by government authorities to finance government operations and diverse public expenses.

Consumer Surplus

The divergence between the amount consumers are prepared to pay and the amount they actually pay for a good or service.