If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X
A) has a comparative advantage in producing good 1.
B) has an absolute advantage in producing good 1.
C) will import good 1 from country Y.
D) will not produce good 1.
Answer: A
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?The difference between the LPM model and the logit and probit models is that:
A. ?the LPM assumes constant marginal effects for all the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects. B. ?the LPM assumes constant marginal effects for some of the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects. C. ?the LPM assumes constant marginal effects for the dependent variable, while the logit and probit models imply diminishing magnitudes of the partial effects. D. ?the LPM assumes different marginal effects for all independent variables, while the logit and probit models imply diminishing magnitudes of the marginal effects.
________ occurs when the direction of cause and effect is mixed up in a study
A) Adverse causality B) Omitted variable bias C) Reverse causality D) Limited information bias