In analyzing macroeconomic data during the past year, you have discovered that average labor productivity fell, but total output increased. What was most likely to have caused this?
A) There is nothing unusual in this outcome because this is what normally occurs.
B) The capital—output ratio probably rose.
C) There was an increase in labor input.
D) Unemployment probably increased.
C
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Travel websites such as Travelocity tend to offer reservation services for multiple travel modes. This is because
A) the firms have contractual obligations to offer reservations for airlines and railroads, for example. B) the firms have statutory obligations to offer reservations for airlines and railroads, for example. C) once the firm has the reservation technology for airlines, there are economies of scale in offering the same service for railroads. D) once the firm has the reservation technology for airlines, there are economies of scope in offering the same service for railroads.
Which of the following is a method to correct for sample selection bias for the problem of incidental truncation?
A. Vector error correction method B. First differencing method C. Heckman's method D. Johansen method