In the Panel Regression Analysis of Beer Taxes on Traffic $F _ { q , \infty }$

question 6

Multiple Choice

In the panel regression analysis of beer taxes on traffic deaths, the estimation period is 1982-1988 for the 48 contiguous U.S. states. To test for the significance of time fixed effects, you should calculate the F -statistic and compare it to the critical value from your $F _ { q , \infty }$ distribution, where q equals

• A) 6 .
• B) 7 .
• C) 48 .
• D) 53 .

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Perfectly Inelastic

A situation where demand does not change at all in response to changes in price.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specified period.

Price Effect

The impact on consumer demand and company revenue as the cost of a good or service changes.