Suppose that in order to estimate of the average effect of participation in a job training program (train) on wage, you included controls for education (educ), years of experience (exper) in your model: log(wage) =  +

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A.  Exper is uncorrelated with train.
B.  Educ is likely correlated with both wage and train .
C. Educ and exper are highly correlated with each other.
D. There might be some other variable that is also correlated with both wage and train.

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Answer: D

Economics

Refer to Scenario 15.2. With no other information available, it is

A) clear Furry should retool the offices. B) clear Furry should rewire the network. C) clear Furry should move to Southern California. D) clear Furry should either retool the offices or rewire the network. E) not possible to tell which payment stream is most valuable to Furry.

The vertical intercept of the consumption function is used to determine the break-even level of real disposable income

a. True b. False Indicate whether the statement is true or false

Suppose over some period of time the money supply tripled, velocity doubled, and real GDP doubled. According to the quantity equation the price level is now

a. 6 times its old value. b. 3 times its old value. c. 1.5 times its old value. d. 0.75 times its old value.

From 1950 to 2009, the average length of recessions in the United States has been

A) less than 1 year. B) between 1 year and 2 years. C) between 2 years and 3 years. D) longer than 3 years.