In the Context of Estimating the Union Wage Effect, Which

question 4

Multiple Choice

In the context of estimating the union wage effect, which of the following statements concerning "selection bias" is false?

• A) Whenever there is a queue of workers applying for union jobs, employers tend to hire the most productive of them.
• B) Unionized workers might not have identical characteristics to non-unionized workers, insofar as their levels of marginal productivity are concerned.
• C) Workers are hired into union jobs according to a randomized selection process.
• D) Factors that are not observed by the researcher influence the outcome of whether or not the worker is represented by a union.
• E) Workers are hired into union jobs according to a fixed selection process.

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Definitions:

Security Liens

A legal right or interest that a creditor has in the debtor's property, lasting usually until the debt that it secures is paid.

Title to Goods

refers to the legal right to own, use, or sell a specific item or piece of property.

Negotiable Document

A legal document guaranteeing payment or delivery of assets that can be transferred from one party to another, often used in trade and finance.

Common Trade Practices

Established methods or patterns of behavior routinely observed and accepted in a particular industry or trade.