In Regression Analysis,which of the Following Causal Relationships Are Possible

question 25

Multiple Choice

In regression analysis,which of the following causal relationships are possible?

• A) X causes Y to vary
• B) Y causes X to vary
• C) Other variables cause both X and Y to vary
• D) All of these options

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Definitions:

Technology Spillover

Occurs when technological advances or innovations benefit other sectors or industries, beyond the original intention.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and social issues.

Government Subsidized

A financial contribution provided by the government to support industries, businesses, or individuals, often aimed at achieving economic or social objectives.

Negative Externalities

Costs suffered by a third party due to an economic transaction that they were not directly involved in, often leading to market failure.