The Rank Condition for Identification of a Structural Equation States

question 2

Multiple Choice

The rank condition for identification of a structural equation states that the first equation in a two-equation simultaneous equations model is identified if, and only if:

• A)the first equation contains at least one exogenous variable (with a nonzero coefficient) that is excluded from the second equation.
• B)the first equation contains at least two exogenous variables (with a nonzero coefficient) that are excluded from the second equation.
• C)the second equation contains at least one exogenous variable (with a nonzero coefficient) that is excluded from the first equation.
• D)the second equation contains at least two exogenous variables (with a nonzero coefficient) that are excluded from the first equation.

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Definitions:

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, and genetics.

Id

In psychoanalytic theory, the part of the personality structure that contains a person's basic drives and instincts, operating on the pleasure principle.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.

Defense Mechanism

A means used by the ego to defend against anxiety and to maintain self-esteem.