Simultaneous Causality

question 38

Multiple Choice

Simultaneous causality

• A)means you must run a second regression of X on Y.
• B)leads to correlation between the regressor and the error term.
• C)means that a third variable affects both Y and X.
• D)cannot be established since regression analysis only detects correlation between variables.

Critically evaluate the effects of technology and organizational strategies on workers.

Understand and differentiate between deskilling thesis and scientific management in work settings.

Analyze sociological perspectives on market regulations and their impact on society.

Evaluate sociological approaches to labor issues such as minimum wage.

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Definitions:

Economic Profit

The difference between the total revenue received by a firm and the total cost of all resources used, including opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision. It represents the benefits an individual, investor or business misses out on when choosing one alternative over another.

Implicit Rate

The implied rate of return that is not explicitly stated, often used in the context of comparing the cost of borrowing to the rate of return on investments.

Equity Capital

The amount of money that is invested in a company by its owners, in exchange for ownership interest or shares.