A Data Set Is a Balanced Panel If It _____

question 22

Multiple Choice

A data set is a balanced panel if it _____.

• A)consists of a sample of individuals, households, firms, cities, states, countries, or a variety of other units, taken at a given point in time
• B)consists of observations on a variable or several variables over time
• C)consists of data for each cross sectional units over the same time period
• D)consists of time-demeaned data for different cross sectional units

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Definitions:

Marginal Utility

The change in total satisfaction or utility that a consumer receives from consuming one additional unit of a good or service.

Utility Maximization

An economic principle suggesting that individuals or firms seek to allocate their resources in a way that maximizes their utility or satisfaction.

Income Effect

The change in an individual's consumption resulting from a change in real income, impacting purchasing power and spending habits.

Substitution Effect

occurs when consumers replace more expensive items with less costly alternatives as their relative prices change.