The Earned Income Tax Credit (EITC) is a refundable tax credit for low and moderate-income workers. The amount depends on the income and number of children. In 1993, an expansion of EITC was passed, which aimed at providing a tax break for low-income individuals with children. The bill went into effect in 1994. We want to use the data to observe the difference in employment for women with children.

1) In the above problem, what is the control group and the treatment group respectively?

A.Women with children, women without children.

B.Women who are employed, women who are unemployed.

C.Women without children, Women with children.

D.Women who are unemployed, women who are employed.

2) What variables should need to be constructed for the above problem?

A. eitc$postbill= as.numeric(eitc$year >=1993) and eitc$kids = as.numeric(eitc$children >1)

B. eitc$postbill= as.numeric(eitc$year >1993) and eitc$kids = as.numeric(eitc$children >1)

C. eitc$postbill= as.numeric(eitc$year >=1993) and eitc$kids = as.numeric(eitc$children >=1)

D. eitc$postbill= as.numeric(eitc$year >1993) and eitc$kids = as.numeric(eitc$children >=1)