Why do labor economists often find it difficult to estimate the ceteris paribus return to education, in terms of wage, using non-experimental data?
A. Education level in non-experimental data is probably dependent on other omitted factors that also affect wage.
B. In a non-experimental setting,education level is often difficult to measure.
C. Wage is often reported unreliably and inaccurately.
D. Experience, another factor that also affects wage, is generally difficult to measure.
Answer: A
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Economists played a key role in the development of merger guidelines by the Department of Justice and the Federal Trade Commission in 1982. These guidelines have three main parts. What are these parts?
A) market definition; measure of concentration; merger standards B) economic analysis; political analysis; dynamic analysis C) concentration ratios; the Herfindahl-Hirschman Index; market standards D) concentration standards; concentration ratios; competitive analysis
Assume the demand for a good is price inelastic, i.e., ed < 1 (in absolute value). This means that if price decreases by 50 percent, quantity demanded will:
A) increase by more than 50 percent. B) decrease by more than 50 percent. C) increase by less than 50 percent. D) decrease by less than 50 percent.
What do economists mean when they say that “there is no free lunch”? Give another example to which this statement applies
Please provide the best answer for the statement.
Time lags are delays in the economy's response to stabilization policies. For a particular stabilization policy, which of the following represents the correct order in which these time lags occur?
A. response lag ? implementation lag ? recognition lag B. implementation lag ? recognition lag ? response lag C. implementation lag ? response lag ? recognition lag D. recognition lag ? implementation lag ? response lag