In the specific factor model, the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and

Which of the following statements is true?

A) All else equal, the incentive to look for a job is lower for an individual with a lower opportunity cost of time. B) All else equal, a worker who earned a higher income earlier but is now unemployed will have a lower opportunity cost of time than someone who had a lower income but is now unemployed. C) All else equal, a worker who earned a higher income earlier but is now unemployed will have the same opportunity cost of time than someone who had a lower income but is now unemployed. D) All else equal, the incentive to look for a job is higher for an individual with a lower opportunity cost of time.

Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test. The resulting ADF test statistic has a

A) normal distribution in large samples. B) non-normal distribution which requires ADF critical values for inference. C) non-normal distribution which requires EG-ADF critical values for inference. D) normal distribution when HAC standard errors are used.