What Should Be the Degrees of Freedom (Df) for Fixed

question 23

Multiple Choice

What should be the degrees of freedom (df) for fixed effects estimation if the data set includes 'N' cross sectional units over 'T' time periods and the regression model has 'k' independent variables?

• A)N-kT
• B)NT-k
• C)NT-N-k
• D)N-T-k

---

Definitions:

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Deflationary

Pertains to a period when the general price levels in an economy are falling, which can increase the real value of money.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries and regulate trade balances.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.