Minimum wage laws
a. creates a surplus of labor in markets where the equilibrium wage is above the minimum wage.
b. cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
c. are likely to have a greater effect on unskilled-labor markets than on skilled-labor markets.
d. All of the above are correct.
c
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If depreciation is less than gross investment, then net investment is
A) positive. B) negative. C) zero. D) This situation could never occur because it is impossible for depreciation to be less than gross investment.
Randomization based on covariates is
A) not of practical importance since individuals are hardly ever assigned in this fashion. B) dependent on the covariances of the error term (serial correlation). C) a randomization in which the probability of assignment to the treatment group depends on one of more observable variables W. D) eliminates the omitted variable bias when using the difference estimator based on Yi = ?0 + ?1Xi + ui, where Y is the outcome variable and X is the treatment indicator.