Source of Spuriousness Models Identify

question 7

Multiple Choice

Source of spuriousness models identify:

• A) variables attending to a causal relationship
• B) variables attending to a non-causal relationship
• C) ratio level variables and their effects
• D) multiple dependent variable influences

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Definitions:

Nonexcludability

A characteristic of certain goods or services where it is not feasible to exclude individuals from using the good or service, regardless of whether they have paid for it.

Negative Externality

A cost experienced by a third party not involved in the economic transaction, such as pollution affecting residents near a factory.

Spillover Cost

A cost incurred by someone who did not choose to incur that cost.

Allocative Efficiency

A state of the market where resources are allocated in a way that maximizes the net benefit to society.