a. wage = -0.90 + 0.54 education b. Provide an interpretation for how wage is related to education in the following: log(wage) = -0.90 + 0.543 education c. Provide an interpretation for how labor hours is related to wage in the following: log(labor hours) = -0.90 + 0.543 log (wage)

a. wage = -0.90 + 0.54 education b. Provide an interpretation for how wage is related to education in the following: log(wage) = -0.90 + 0.543 education c. Provide an interpretation for how labor hours is related to wage in the following: log(labor hours) = -0.90 + 0.543 log (wage)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a. How do you interpret the coefficient of the education variable in the following:
wage
= -0.90 + 0.54 education
b. Provide an interpretation for how wage is related to education in the following:
log(wage) = -0.90 + 0.543 education
c. Provide an interpretation for how labor hours is related to wage in the following:
log(labor hours) = -0.90 + 0.543 log (wage)
d. Provide an interpretation for how labor hours is related to wage in the following:
i. labor hours = -0.90 + 0.543 log (wage)
e. Provide an interpretation for how consumption is related to income in the
following: consumption = -0.90 + 0.54 income + 0.95 income?

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