Question

9. The estimates of the effect of wages on labor supply, from the study of a negative income tax system run by President Lyndon B. Johnson's Office of Economic Opportunity between 1968 and 1976, is an example of what type of empirical analysis?

a. random experiment
b. cross-sectional regression c. time series
d. quasi-experimental

10. Empirical evidence suggests that the Earned Income Tax Credit (EITC):

a. does not affect men's labor supply.
b. reduces the labor supply of married women.
c. has significantly increased hours of work for those in the labor force.

d. has not caused workers to enter the labor force.

11. Suppose a researcher identifies the effect of the Earned Income Tax Credit (EITC) on the labor supply of single mothers by comparing the labor supply of those mothers after the EITC expansion with the labor supply of single women without children before and after the EITC expansion. Which of the following statements would cause the estimates from such a study to be biased?

1. Single women without children tend to work more hours than do single women with children.

2. Preferences regarding work among single women with children change over time.

3. Single women with children have higher income requirements for their larger family than do single women without children.

4. Preferences regarding work among single women with children remain the same over time.

12. An individual's savings is defined as the difference between:

1. current income and current consumption.

2. cumulative income and cumulative consumption to the present time, EXCLUDING interest gained or lost over that time.

3. cumulative income and cumulative consumption to the present time, INCLUDING interest gained or lost over that time.

4. lifetime spending and lifetime income.

Answer 1

9) The estimates of the effect of wages of wages on labour supply,from the study of a negative income tax systen run by President Lyndon B.Johnson's Office of Economic Opprtunity between 1968 and 1976, is an example of (b) cross- sectional regression c. time series.

10) Empirical evidence suggests that the Earned Income Tax Credit (EITC) (d) has not caused workers to enter the labour force

11) Suppose the resercher identifies the effect of EITC on the labour supply of single mothers by comparing the labour supply of those mothers after the EITC expansion.Which of the statement would cause the estimates from such a study to be biased is - Single women with children have higher income requirements for their larger family than do single women without children.

12) An individuals savings is defined as the difference between: current income and current consumption.