When using panel data and in the presence of endogenous regressors
A) the TSLS does not exist.
B) you do not have to worry about the validity of instruments, since there are so many fixed effects.
C) the OLS estimator is consistent.
D) application of the TSLS estimator is straightforward if you use two time periods and difference the data.
Answer: D
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Which of the following is NOT a step involved in optimization in levels?
A) Calculating the total net benefit of each alternative B) Choosing the alternative with the highest net benefit C) Calculating the marginal consequences of moving between alternatives D) Converting all costs and benefits into a common value of measurement
Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.