Consistency of Feasible Generalized Least Square Estimators Requires the Error

question 8

True/False

Consistency of feasible generalized least square estimators requires the error term to be correlated with lags of the explanatory variable.

---

Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual price they do pay.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to market prices being higher.

Total Benefits

The complete set of advantages, monetary or otherwise, received from the consumption or use of a good or service.

Textile Industry

A sector of the economy focused on the production of yarn, cloth, and clothing, and the various processes involved in the manufacture of textiles.