The Coefficient Estimates from the Probit Model

question 4

Multiple Choice

The coefficient estimates from the probit model

• A)indicate the estimated marginal effects that the independent variables have on the dependent variable.
• B)indicate the general degree to which the independent variables are correlated with the dependent variable.
• C)are constrained to be positive.
• D)must fall between 0 and 1.

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Definitions:

Agricultural Subsidies

Agricultural subsidies are financial incentives provided by the government to farmers or agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competition with domestic industries.

Trade Restrictions

Measures imposed by governments to control the import and export of goods and services with the intention of protecting domestic industries, which can include tariffs, quotas, and other barriers.

Efficiency Argument

The principle that resources should be allocated in a way that maximizes the productivity or welfare of a community or economy.