Which of the Following Statements Is True

question 126

Multiple Choice

Which of the following statements is true?

• A) It is appropriate to compute a correlation coefficient for the relationship between a dummy variable and a dependent variable.
• B) If a qualitative variable has m categories, you should use m - 1 dummy variables to incorporate the qualitative variable into a regression model.
• C) Dummy variables are used to incorporate qualitative variables into a regression model.
• D) All of these.
• E) None of these.

Analyze the effects of tax on buyers and sellers in terms of price changes.

Determine how the elasticity of demand and supply influences the distribution of tax burdens and deadweight loss.

Interpret graphical representations of supply and demand to assess the impacts of taxation.

Evaluate the impact of different tax sizes on market outcomes, government revenue, and deadweight loss.

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Definitions:

Reactions

The responses or behaviors that individuals exhibit as a result of external stimuli or events.

Behaviour

Actions or reactions of individuals or groups in response to external or internal stimuli, reflecting their character and attitude.

Results

The outcomes or consequences of actions taken by individuals or organizations, often used to measure success or effectiveness.

Program Evaluation

The systematic assessment of the processes and outcomes of a program, with the aim to improve its effectiveness and efficiency.