In practice, the most difficult aspect of IV estimation is
A) finding instruments that are both relevant and exogenous.
B) that you have to use two stages in the estimation process.
C) calculating the J-statistic.
D) finding instruments that are exogenous. Relevant instruments are easy to find.
Ans: A) finding instruments that are both relevant and exogenous.
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Monopolies can make an economic profit in the long run because of
A) rent seeking by competitors. B) the elastic demand for the monopoly's product. C) the cost-savings gained by the monopoly. D) barriers to enter the monopoly's market.
Suppose the market price of a good X is below the equilibrium price. The result is a shortage and sellers can be expected to decrease the quantity of that good X supplied
a. True b. False Indicate whether the statement is true or false