A regression model exhibits unobserved heterogeneity if _____.
A. there are unobserved factors affecting the dependent variable that change over time
B. there are unobserved factors affecting the dependent variable that do not change over time
C. there are unobserved factors which are correlated with the observed independent variables
D. there are no unobserved factors affecting the dependent variable
Answer: B
You might also like to view...
History has shown that over the long run, labor-saving technology has actually not reduced employment
a. True b. False Indicate whether the statement is true or false
If good "A" is represented on the horizontal axis and good "B" on the vertical axis, then the steeper the production possibilities frontier at a given level of production of good "A," the
a. larger the opportunity cost of producing an extra unit of good "A." b. larger the quantity of resources being devoted to the production of good "B." c. smaller the quantity of resources being devoted to the production of good "A." d. smaller the opportunity cost of producing an extra unit of good "A." e. greater the returns to scale in the production of good "A."