When There Are Omitted Variables in the Regression, Which Are

question 1

Multiple Choice

When there are omitted variables in the regression, which are determinants of the dependent variable, then

• A)you cannot measure the effect of the omitted variable, but the estimator of your included variable(s)is (are)unaffected.
• B)this has no effect on the estimator of your included variable because the other variable is not included.
• C)this will always bias the OLS estimator of the included variable.
• D)the OLS estimator is biased if the omitted variable is correlated with the included variable.

Understand the specific provisions and applications of the Sherman Act and Clayton Act.

Identify the legal standards and tests applied by the courts in antitrust cases.

Recognize the difference between horizontal and vertical agreements and their implications on antitrust laws.

Understand the role of the Federal Trade Commission in enforcing antitrust laws.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.