Which of the Following Correctly Identifies a Characteristic of Structural

question 8

Multiple Choice

Which of the following correctly identifies a characteristic of structural equations?

• A)A structural equation should contain equal number of dependent and independent variables.
• B)A structural equation should contain equal number of endogenous and exogenous variables.
• C)A structural equation should have a behavioral, ceteris paribus interpretation on its own.
• D)A structural equation should not contain structural errors.

---

Definitions:

Assets

Resources owned or controlled by a business or individual, expected to bring future economic benefits.

Accounting Equation

The foundational principle of accounting representing the relationship between a company’s assets, liabilities, and equity: Assets = Liabilities + Equity.

Vehicle

A means of transportation, such as a car, truck, motorcycle, or bicycle, that facilitates the movement of people or goods from one place to another.

Credit

Credit refers to the trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.