Suppose that you are interested in estimating the average impact a job training program has on wages. However, you recognize that there are some observed factors that influence wage, participation on the training program, or both.You may still get the unbiased estimate for the program effectiveness by:
A. Excluding those observed factors from your model and running a simple linear regression
B. Including only the factors that predict wage but not participation as controls and running a multiple linear regression
C. Including only the factors that predict participation but not wage as controls and running a multiple linear regression
D. ?
Answer: D
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The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is
a. to increase equilibrium price and quantity b. to decrease equilibrium price and quantity c. to increase equilibrium price and decrease equilibrium quantity d. to increase equilibrium quantity and decrease equilibrium price e. that equilibrium price and quantity remain constant
In a winner-take-all labor market,
a. anyone who is hired at any wage is a winner b. any firm that can hire a worker is a winner c. a few key people critical to the overall success of the enterprise are rewarded with substantial pay d. the person most critical to the overall success of an enterprise is rewarded with substantial pay, and everyone else is paid the median wage e. only one worker is paid
Which of the following is not held constant in a demand schedule?
a. income b. tastes c. price d. expectations
An example of price discrimination is the price charged for:
A. coffee. B. college admission. C. cashmere sweaters. D. cough syrup.