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

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Definitions:

Ethical Behaviour

Behaving in a manner that aligns with the moral standards and values commonly accepted by society and individuals.

Impartiality and Fairness

The principle of treating all individuals and parties without bias or discrimination, ensuring equitable treatment and opportunities.

Interactional Justice

The perception of fairness in interpersonal interactions, particularly in terms of how decisions and processes are communicated and enacted by authorities.

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Situations or problems requiring a choice between actions that must be evaluated as right or wrong based on moral principles.