Life cycle patterns create substantial inequality across age groups

Omitted variable bias

A) will always be present as long as the regression R2 < 1. B) is always there but is negligible in almost all economic examples. C) exists if the omitted variable is correlated with the included regressor but is not a determinant of the dependent variable. D) exists if the omitted variable is correlated with the included regressor and is a determinant of the dependent variable.

Which of the following groups is most likely to derive substantial benefits from the Patient Protection and Affordable Care Act?

a. Healthy young people. b. Individuals and families with incomes of more than 400 percent of the poverty level. c. Individuals with pre-existing health problems. d. The elderly.