Which of the following is an example of a dummy variable?
A. A person’s hourly wage
B. The number of years of education someone has
C. The number of years of work experience someone has
D. Whether or not someone has a college degree
Answer: D
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A product's price elasticity of demand depends critically on the availability of substitutes
Indicate whether the statement is true or false
A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?
What will be an ideal response?
The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates. b. timing problems. c. disagreements over potential GDP. d. uncertain forecasts. e. All of the above are correct.
Price discrimination
a. forces monopolies to charge a lower price as a result of government regulation. b. is an attempt by a monopoly to prevent some customers from purchasing its product by charging a high price. c. is an attempt by a monopoly to increases its profit by selling the same good to different customers at different prices. d. increases the consumer surplus associated with a monopolistic market.