Consider the Following Two Equations to Describe Labor Markets in Various

question 35

Multiple Choice

Consider the following two equations to describe labor markets in various sectors of the economy Nd = β0 + β1 + u
Ns = γ0 + γ1 + v
Nd = Ns = N

• A)W/P is exogenous,n is endogenous
• B)Both n and W/P are endogenous
• C)n is exogenous,W/P is endogenous
• D)the parameters cannot be estimated because it would require two equations to be estimated at the same time (simultaneously)

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Definitions:

Mortgage Bond

A bond secured by a mortgage on a property, where the bondholders have a claim on the property in case of default.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Coupon Bond

A bond that offers interest payments to its holder through coupons attached to the bond, redeemable at specified intervals before the bond's maturity date.

Zero Coupon Bond

A bond that is issued at a discount to its face value and pays no interest before maturity, when its full face value is repaid.