Author Question: An omitted variable is a variable that: A) is purposely left out as it does not aid an economic ... (Read 93 times)

Pineappleeh · **on:** Jun 29, 2018

An omitted variable is a variable that:

A) is purposely left out as it does not aid an economic analysis.
B) does not cause other variables in a study to change when it changes.
C) is removed from a study as it can lead to the problem of reverse causality.
D) has been left out, and if included, would explain why the variables considered in a study are correlated.

Question 2

The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

A) D0 to D1.
B) D1 to D0.
C) S0 to S1.
D) S1 to S0.