A Regression Estimates That a Worker's Hourly Productivity (P),measured in Units

question 34

Multiple Choice

A regression estimates that a worker's hourly productivity (P) ,measured in units of output,is related to hourly wage (W) as follows: Pi = 4.5 + 0.2Wi.This indicates that

• A) a firm raising their wage by $10 will reduce their productivity by 2 units.
• B) a firm raising their wage by $10 will raise their productivity by 2 units.
• C) a worker will produce 2 units when the firm pays a wage of $10.
• D) a worker will produce 4.5 units.

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