"Ordinary Least Squares" Is a Technique That Can Be Used

question 16

Multiple Choice

"Ordinary least squares" is a technique that can be used to

• A)identify the best model.
• B)determine which variables in a model are endogenous and which are exogenous.
• C)obtain a bar graph showing successive quarterly increases in output.
• D)obtain a line describing consumption behavior in the real world.
• E) determine the direction of causation between consumption and income.

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Definitions:

Additional Unit

Refers to the next unit of production or consumption beyond the current level.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an extra unit of a good or service.

Marginal Cost

The cost increase resulting from the production of an extra unit of a product or service.

Part-Time Business

A venture or enterprise operated on a less than full-time basis, often alongside another job or personal commitments.