Suppose a Researcher Identifies the Effect of the Earned Income

question 35

Multiple Choice

Suppose a researcher identifies the effect of the Earned Income Tax Credit (EITC) on the labor supply of single mothers by comparing the labor supply of those mothers to the labor supply of single women without children before and after the EITC expansion.This is an example of which type of empirical strategy?

• A) cross-sectional regression
• B) randomized experiment
• C) quasi-experiment
• D) structural estimation

---

Definitions:

Horizontal Acquisitions

A form of corporate acquisition where a company buys another company that operates in the same industry at the same level of the supply chain.

Synergistic Increases

Enhancements in value or performance achieved through the combination or cooperation of different entities, surpassing what would be possible individually.

Value

The importance, worth, or usefulness of something, often in economic terms.

Surplus Funds

Excess funds that are not needed for immediate expenses and can be invested or saved for future use.