Q3 Given the following SRF for the Mincerian wage equation: wage=47+0.12edu+0.06age0.007agee2 Where edu= worker education, in years; age =worker's age. (i) Does the coefficient of edu give the slope of the relationship between the wage and education? Explain. (ii) Does the coefficient of age represent the slope of the relationship between the wage and age? Explain. (iii) Does the coefficient of age2 represent the slope of the relationship between the wage and age? Explain. I Assume that a researcher sets out to investigate the effect of foreign direct investment on economic growth, where the correct regression model should be specified as: gr=0+1fdi+2inf+3ext+4Top+ Where (i) gr= GDP growth, fdi= foreign direct investment, inf = domestic inflation, ex bilateral exchange rate with the major trading country, Top =trade openness. (ii) The variables fdi; and inf, ext, Top have influence on gr and are correlated with fdi. Suppose that an inexperienced researcher specifies the PRF for economic growth as: gr=0+1fdi+2inf+3Top+ () Explain what will happen to the estimation of 2, in terms of its identification. (ii) Explain, with graphical illustration, what will happen to the unbiasedness property of coefficient of the variable of interest. Q3 Given the following SRF for the Mincerian wage equation: wage=47+0.12edu+0.06age0.007agee2 Where edu= worker education, in years; age =worker's age. (i) Does the coefficient of edu give the slope of the relationship between the wage and education? Explain. (ii) Does the coefficient of age represent the slope of the relationship between the wage and age? Explain. (iii) Does the coefficient of age2 represent the slope of the relationship between the wage and age? Explain. I Assume that a researcher sets out to investigate the effect of foreign direct investment on economic growth, where the correct regression model should be specified as: gr=0+1fdi+2inf+3ext+4Top+ Where (i) gr= GDP growth, fdi= foreign direct investment, inf = domestic inflation, ex bilateral exchange rate with the major trading country, Top =trade openness. (ii) The variables fdi; and inf, ext, Top have influence on gr and are correlated with fdi. Suppose that an inexperienced researcher specifies the PRF for economic growth as: gr=0+1fdi+2inf+3Top+ () Explain what will happen to the estimation of 2, in terms of its identification. (ii) Explain, with graphical illustration, what will happen to the unbiasedness property of coefficient of the variable of interest