Randomized sampling is not feasible in many policy studies, so researchers turn to different strategies to estimate causality from observational data. One such approach is difference-in-differences (DiD). Which of the following statements best describes DiD?
a. DiD is the only approach that uses data from individuals in both groups that are exposed to the treatment.
b. DiD is a hybrid approach that utilizes a cross-section of individuals across time to measure differences.
c. DiD uses differences in individual characteristics to divide the data into two groups.
d. The convenient feature of DiD is that the two groups do not need to experience similar trends in the outcome variable during the pretreatment time period.
b. DiD is a hybrid approach that utilizes a cross-section of individuals across time to measure differences.
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When the production possibility frontier shifts out relatively more in one direction, we have
A) biased growth. B) unbiased growth. C) immiserizing growth. D) balanced growth. E) imbalanced growth.
The longer the time frame involved, the more likely it is that the demand will be relatively
A) elastic. B) inelastic. C) steep. D) flat.