An explanatory variable is called exogenous if it is correlated with the error term.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: An explanatory variable is called endogenous if it is correlated with the error term.
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Regardless of the size of wealth and substitution effects for workers, the benefit of a wage subsidy will accrue disproportionately to workers if the labor supply curve is relatively more wage-inelastic than the labor demand curve.
Answer the following statement true (T) or false (F)
Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling?
A) J + H B) C + E C) C + E + J + H D) G + H
In the above figure, the curve that represents the most income inequality is
A) a. B) b. C) c. D) d.
The period 1992-200 was marked by
a. erratic changes in real GDP b. abnormally high levels of unemployment c. abnormally high levels of inflation d. sustained economic growth e. extended phase of recession