Panel Data Estimation Can Sometimes Be Used

question 52

Multiple Choice

Panel data estimation can sometimes be used

• A)to avoid the problems associated with misspecified functional forms.
• B)in case the sum of residuals is not zero.
• C)in the case of omitted variable bias when data on the omitted variable is not available.
• D)to counter sample selection bias.

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Definitions:

Labor

The effort by humans to produce goods or services in exchange for wages or other compensation.

Marginal Product

The additional output produced by using one more unit of a production input, holding all other inputs constant.

Employment

The condition of having a paid job or occupation, involving a contract between an employer and an employee that provides compensation for work performed.

Marginal Product

The additional output that is produced by adding one more unit of a variable resource, such as labor or capital, to the production process.