Indicate for Which of the Following Examples You Cannot Use

question 30

Multiple Choice

Indicate for which of the following examples you cannot use Entity and Time Fixed Effects: a regression of

• A)OECD unemployment rates on unemployment insurance generosity for the period 1980-2006 (annual data).
• B)the (log of)earnings on the number of years of education, using the Current Population Survey of 60,000 households for March 2006.
• C)the per capita income level in Canadian Provinces on provincial population growth rates, using decade averages for 1960, 1970, and 1980.
• D)the risk premium of 75 stocks on the market premium for the years 1998-2006.

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Definitions:

Exceptions

Specific conditions or cases for which the general rule does not apply.

Firm Offers

In contract law, promises made by a seller to hold an offer open to a buyer for a certain period without requiring consideration.

Irrevocable Offers

Offers in a contractual context that cannot be withdrawn, revoked, or altered once made, often for a specific period of time.

Consideration

In contract law, something of value (such as goods, services, or money) exchanged between parties that is necessary for a valid contract.