The main advantage of using panel data over cross sectional data is that it
A) gives you more observations.
B) allows you to analyze behavior across time but not across entities.
C) allows you to control for some types of omitted variables without actually observing them.
D) allows you to look up critical values in the standard normal distribution.
Answer: C
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Why is it that the private market fails to provide the efficient quantity of a public good?
a. because it is impossible to force those who benefit from the good to pay for it b. because public goods are always large-scale projects that require government financing c. because there are external costs associated with the provision of a public good d. because there are uninsurable risks associated with a public good
A price above the equilibrium price will:
A) result in quantity supplied being less than quantity demanded. B) result in a shortage. C) create pressure for price to fall. D) tend to rise over time.