Regressing GDP Per Capita on a Measure of Openness to Trade

question 12

Multiple Choice

Regressing GDP per capita on a measure of openness to trade across countries may give biased estimation results because

• A) each country measures openness differently
• B) without further restrictions, the regression coefficient for openness could be negative
• C) openness may capture the effects of omitted variables such as financial reform
• D) openness is an index measure, but GDP per capita is measured in monetary units
• E) regression is an appropriate econometric methodology only for time series, not for cross-sectional data

---

Definitions:

Renal Failure

A medical condition where the kidneys lose the ability to filter waste and excess fluids from the blood effectively.

Clinical Judgment

The process by which healthcare professionals make decisions based on evidence, patient conditions, and their own experience.

Medical Liability

The legal responsibility held by healthcare professionals for any harm or injury caused to a patient due to negligence or omission.

Assertive Communication

A communication style in which individuals express their thoughts, feelings, and needs in a clear, honest, and respectful way.