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

Quizplus · Accepted Answer

An omitted variable is a variable that has been left out of a study, and its inclusion would explain why the variables being studied are correlated. This omission can lead to biased or incorrect conclusions in the study. Choices A, B, and C are incorrect as they do not accurately describe an omitted variable.

An Omitted Variable Is a Variable That ________