Quiz 1

Total Points: 3

1. Which of these variables is usually a nominal or categorial variable?
1. Firm size (how many employees)
2. Population density
3. Language spoken at home
4. Labor force status
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Answer
2. If we wanted to measure change in income over time for the state of Virginia and compare it to the state of california, which of these would be the more appropriate measure:
1. Aggregate nominal income of each state per year
2. nominal income per capita of each state per year
3. real income per capita of each state per year
4. Maximum income of each state across years
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Answer
3. You obtain the following result in from a regression, where poverty and whether you live in an urban area are both binary variables. Which of the following are true? (Select all that apply)
$$Poverty=0.12+\ 0.02 \ Urban \ Area$$

a. The share of individuals living in poverty in urban areas is 14 percent

b. The share of individuals living in poverty in non-urban areas is 0.12 percentage points

c. The share of individuals living in poverty in non-urban areas is 12 percent

d. The difference in the poverty rate between urban and non-urban areas is 2 percentage points.

e. Living in an urban area is associated with a 2 percent increase in the likelihood of being in poverty.

f. the share of individuals living in a rural area is 10 percent

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Answer