Define Y=manufactures in exports and X=skilled workers. If we estimate the equation Yi=ß0+ß1Xi+uiYi=B0+B1X¡+ui using the data from the graph below, we might expect B1B1 to be -1 -2 -3 -4 -5 3 4 5 7 8 10 11 12 Abundant land; Scarce land; less skilled workers more skilled workers A) negative B) zero C) positive D) It is impossible to determine 3. 2. 1. More manufactures in exports 6 2. More raw materials in exports

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Define Y=manufactures in exports and
X=skilled workers. If we estimate the equation
Yi=ß0+ß1Xi+uiYi=B0+ß1Xi+ui using the data
from the graph below, we might expect ß1B1
to be
1
-1
-2
-3
-5
-7
1
2
3
7
8
9.
10
11
12
Abundant land;
Scarce land;
less skilled workers
more skilled workers
A) negative
B) zero
C) positive
D) It is impossible to determine
More manufactures
More raw materials
in exports
in exports
3.
2.
4)
6
Transcribed Image Text:Define Y=manufactures in exports and X=skilled workers. If we estimate the equation Yi=ß0+ß1Xi+uiYi=B0+ß1Xi+ui using the data from the graph below, we might expect ß1B1 to be 1 -1 -2 -3 -5 -7 1 2 3 7 8 9. 10 11 12 Abundant land; Scarce land; less skilled workers more skilled workers A) negative B) zero C) positive D) It is impossible to determine More manufactures More raw materials in exports in exports 3. 2. 4) 6
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