When estimating a labor demand function, one needs to
A. assume labor demand is equal across states.
B. labor supply is perfectly elastic.
C. find an instrument (e.g., policy) that shifts labor supply over time or location.
D. find an instrument (e.g., policy) that shifts labor demand over time or location.
E. assume labor demand is equal across industries.
Answer: C
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Which of the following best illustrates the adverse selection problem?
A) a professional football team that consistently drafts poor players B) an economic agent who engages in risky behavior once a loan is received C) an individual who hides a pre-existing condition from a health insurer D) an individual who experiences a lost of income by not working while attending college
Explain why the buffalo almost became extinct while cattle did not, even though both provide similar goods for people
What will be an ideal response?
If a firm's average cost is currently $100, and the marginal cost is $95, then the average cost is currently falling
a. True b. False Indicate whether the statement is true or false
"A $1,000 tax paid by a poor person may be a larger sacrifice than a $10,000 tax paid by a wealthy person" is an argument in favor of
a. the horizontal equity principle. b. the benefits principle. c. a regressive tax argument. d. the ability-to-pay principle.