Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)The use of 2SLS is applicable to simultaneous equations model with at most two equations.
• B)Identification of simultaneous equations with three or more equations is based on matrix algebra.
• C)2SLS method used in the estimation of simultaneous equations is an example of a system estimation method.
• D)The maximum number of equations permissible for a simultaneous equations model is four.

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Definitions:

Entrepreneurial Ability

This refers to the skills and qualities that enable an individual to identify business opportunities, start, develop, and manage a business successfully.

Households

Units that consist of one or more people living together, who make joint decisions on consumption and other economic activities.

Durable Good

A type of good that does not quickly wear out and is expected to last for a relatively long period, such as cars, appliances, and furniture.

Handheld Calculator

A small, portable electronic device used to perform basic arithmetic operations and sometimes more complex mathematical calculations.