Consider the Population Regression of Log Earnings [Y_i, Where Y_i

question 12

Multiple Choice

Consider the population regression of log earnings [Y_i, where Y_i = ln(Earnings_i) ] against two binary variables: whether a worker is married (D_1i, where D_1i=1 if the i^th person is married) and the worker's gender (D_2i, where D_2i=1 if the i^th person is female) , and the product of the two binary variables Y_i = β₀ + β₁D_1i + β₂D_2i + β₃(D_1i×D_2i) + u_i. The interaction term

• A)allows the population effect on log earnings of being married to depend on gender
• B)does not make sense since it could be zero for married males
• C)indicates the effect of being married on log earnings
• D)cannot be estimated without the presence of a continuous variable

---

Definitions:

Administrative Remedies

Procedures provided by administrative agencies for resolving disputes or complaints before resorting to litigation.

Compliance

The act of conforming to and following rules, standards, or laws imposed by an authority, regulatory body, or agreement.

Administrative Agency

A government body responsible for the oversight and administration of specific functions, such as regulations or the execution of laws.

Final Rule

A regulatory or policy statement issued by an administrative agency that has completed the proposal, consideration, and public comment stages, now serving as a definitive ruling.