For the 2012 GSS, the Regression of Respondent's Income in Constant

question 67

Multiple Choice

For the 2012 GSS, the regression of respondent's income in constant dollars (Y) on years of education (X) yields the following equation: Y = -45,204.31 + 5,293.56X.

• A) What is the value of the regression coefficient?
• B) How much does income (Y) increase for each increase of one year of education?
• C) What is the predicted income in 2012 for a person with a bachelor's degree (16 years of education)?
• D) The correlation between income and years of education is .28. What does this tell you about this relationship?

---

Definitions:

Depressions

Extended periods of economic downturn marked by severe declines in GDP, high unemployment, low consumer spending, and deflation, more intense and lasting longer than recessions.

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in free markets, the invisible hand guiding economies, and the theories of supply and demand.

Adam Smith

A Scottish economist and philosopher, often considered the father of modern economics, known for his works on the principles of free markets and the "invisible hand."

Quantity Theory

An economic theory that relates the quantity of money in an economy to the level of prices of goods and services.