Time-Series Models

question 46

Multiple Choice

Time-series models

• A)cannot be replicated by another researcher.
• B)use dummy variables to control for cyclical variation.
• C)use dummy variables to control for time trend.
• D)both a and b
• E)both b and c

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Definitions:

Average Product

The output per unit of input, calculated by dividing total output by total input.

Diminishing Marginal Returns

Diminishing Marginal Returns is an economic principle stating that as additional units of a factor of production are added to a fixed amount of other factors, the incremental increase in output will eventually decrease.

Marginal Product

The additional output that results from using one more unit of a specific input, keeping other inputs constant.

Third Worker

In the context of labor and production, refers to the addition of a third employee in a process, which can affect productivity differently depending on the scenario.