On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to
a. the marginal product of labor.
b. the marginal product of capital.
c. diminishing marginal returns.
d. a compensating differential.
d
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If you want to test, using a 5% significance level, whether or not a specific slope coefficient is equal to one, then you should
A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96. B) add and subtract 1.96 from the slope and check if that interval includes 1. C) see if the slope coefficient is between 0.95 and 1.05. D) check if the adjusted R2 is close to 1.
The lower the interest rates
a. the more value individuals place on future dollars b. the less value individuals place on future dollars c. less investments will take place d. does not affect the investment strategy