Simultaneous Causality Bias

question 28

Multiple Choice

Simultaneous causality bias

• A)is also called sample selection bias.
• B)happens in complicated systems of equations called block recursive systems.
• C)results in biased estimators if there is heteroskedasticity in the error term.
• D)arises in a regression of Y on X when, in addition to the causal link of interest from X to Y, there is a causal link from Y to X.

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Definitions:

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at various prices.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Industry Demand

The total demand for the products of a specific industry, encompassing the collective demand of all consumers for these products.

MR Curve

The Marginal Revenue Curve represents the change in total revenue that results from selling one additional unit of a product or service.