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Annual_Hours_Worked = + *Hourly_Wage_Rate + *Non-Labor_Income_Per_Year + error Where the estimated coefficients are: = 3, = 18 and = - 1.2. The average wage rate
Annual_Hours_Worked = + *Hourly_Wage_Rate + *Non-Labor_Income_Per_Year + error Where the estimated coefficients are: = 3, = 18 and = - 1.2. The average wage rate is $60 and the average hours worked is 1800 per year. All coefficients are statistically significant What is the estimate of the elasticity of labor supply with respect to the wage rate? Group of answer choices -60% 20% -40% 40% 60%
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Business Statistics for Contemporary Decision Making
Authors: Ken Black
6th Edition
978-0470409015, 9780470559062, 470409010, 470559063, 978-0470910184
