Endogenous Variables

question 34

Multiple Choice

Endogenous variables

• A)are correlated with the error term.
• B)always appear on the LHS of regression functions.
• C)cannot be regressors.
• D)are uncorrelated with the error term.

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Definitions:

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Investment

The allocation of resources, usually financial, into projects, assets, or enterprises, aiming to earn a return over time.

Inventory

The total amount of goods and materials held in stock by a business, industry, or other entity, used in production or sales.

Sole Proprietorship

An unincorporated business firm owned by one person.