Empirical Estimates of Cross-Wage Elasticities Show That

question 18

Multiple Choice

Empirical estimates of cross-wage elasticities show that

• A) well-educated labor is more likely to be complementary with capital than is unskilled labor.
• B) the extent of substitution in production between immigrant and native workers is very high.
• C) labor and energy are complements in production.
• D) labor and raw materials are complements in production.

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Definitions:

Unit Change

refers to a single increment change in the independent variable value, examining its effect on the dependent variable.

Average Change

The mean difference between values in a series of data points, representing the typical increase or decrease over time.

Y-Intercept

The point where a line or curve crosses the y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.

Total Variation

The overall measure of variability or dispersion within a dataset.