Causal Effects That Depend on the Value of an Observable

question 1

Multiple Choice

Causal effects that depend on the value of an observable variable,say Wi,

• A)cannot be estimated.
• B)can be estimate by interacting the treatment variable with Wi.
• C)result in the OLS estimator being inefficient.
• D)requires use of homoskedasticity-only standard errors.

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Definitions:

Five Fundamental Questions

Key questions in economics that address what to produce, how to produce, for whom to produce, when to produce, and where to produce goods and services.

Central Bank

The national financial institution that oversees the monetary system of a country, controlling interest rates and currency supply.

Scarce Supply

Refers to the condition where the availability of a particular good or resource is insufficient to meet the demands.

Market System

An economic system where prices and the distribution of goods and services are determined by competition in a free market.