An "Omitted Variable" Is

question 26

Multiple Choice

An "omitted variable" is

• A)a variable which is purposely omitted from an economic analysis.
• B)a variable which is inadvertently omitted from an economic analysis.
• C)a variable that has no impact on other variables in an economic analysis.
• D)a variable that affects other variables and its omission from economic analysis can lead to false conclusions about cause and effect.

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Definitions:

Absolute Consistency

The unwavering adherence to the same principles, measures, or methods across different situations or over time.

Relative Consistency

The degree to which an individual's behavior in a specific trait remains stable across different situations and over time.

Party

A social gathering of invited guests, typically involving eating, drinking, and entertainment.

Department of Motor Vehicles

A state-level government agency that administers vehicle registration and driver licensing.