Which of the following is a difference between least absolute deviations (LAD) and ordinary least squares (OLS) estimation?
A. OLS is more computationally intensive than LAD.
B. OLS is more sensitive to outlying observations than LAD.
C. OLS is justified for very large sample sizes while LAD is justified for smaller sample sizes.
D. OLS is designed to estimate the conditional median of the dependent variable while LAD is designed to estimate the conditional mean.
Answer: B
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The three main methods that governments use to cope with an external cost of production include all of the following EXCEPT
A) taxes. B) mandating clean technology. C) cap-and-trade D) price floors.
Answer the following statements true (T) or false (F)
1. All people in the non institutional population are counted as members of the labor force. 2. The labor force participation rate describes the civilian labor force as a percentage of the civilian noninstitutional population. 3. The total U.S. labor force excludes members of the armed services stationed outside the United States. 4. All college students are excluded from the U.S. labor force. 5. The increase in U.S. population during the past few years has required an increase in the number of agriculture workers to meet food requirements.