Reasoning resulting in differing results includes the time period under examination, the data sources and proxies used, the econometric tools employed, and many other reasons. This is not to say that because different researchers come to different conclusions the analysis is confused. It just means further investigation is needed.
What will be an ideal response?
As the text suggests, this is perfect use of experimental data for testing. Using certain states
as "controls" would allow us to examine the difference in fatalities between those states that did not change the tax. Of course, we need to control for other differences that might affect outcomes.
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The circular flow is used to make the point that
A) unemployment only occurs during a recession. B) production generates income. C) rising prices never occur during times of unemployment. D) households purchase factors of production from firms.
If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good
A) 0.80; an inferior B) 1.2; a normal C) 0.80; a normal D) -1.2; an inferior
Suppose air pollution creates a haze that obscures a previously clear view of a distant mountain range. This effect of pollution would be called
A. material and crop damage. B. a health impact. C. harm to environmental amenities. D. ecological damage.
Based on the graphic for perfect competition versus monopoly, which is the highest number?
a. PM
b. MC
c. PPC
d. ATC