One of the Major Lessons Learned in the Chapter on Experiments

question 30

Multiple Choice

One of the major lessons learned in the chapter on experiments and quasi-experiments

• A)is that there are almost no true experiments in economics and that quasi-experiments are a poor substitute.
• B)you should always use TSLS when estimating causal effects in quasi-experiments.
• C)populations are always homogeneous.
• D)is that the insights of experimental methods can be applied to quasi-experiments, in which special circumstances make it seem "as if" randomization has occurred.

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Definitions:

Shares

Shares represent an ownership stake in a company or financial asset, entitling the holder to a proportional share of the profits through dividends, if such profits are distributed.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to make available.

Saving

The portion of income not spent on consumption or taxes, typically put aside for future use or investment.

Loanable Funds

Financial resources available for borrowing, consisting of the savings of individuals, businesses, and the government.