The difference between an unbalanced and a balanced panel is that
A) you cannot have both fixed time effects and fixed entity effects regressions.
B) an unbalanced panel contains missing observations for at least one time period or one entity.
C) the impact of different regressors are roughly the same for balanced but not for unbalanced panels.
D) in the former you may not include drivers who have been drinking in the fatality rate/beer tax study.
Ans: B) an unbalanced panel contains missing observations for at least one time period or one entity.
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If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage
A) ceiling above the equilibrium wage. B) ceiling below the equilibrium wage. C) floor above the equilibrium wage. D) floor below the equilibrium wage.
In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will decrease production by
A) zero. B) 2 units per day. C) 4 units per day. D) 6 units per day.