Question : 21) Refer to the scenario above. Which of the following : 1377291

21) Refer to the scenario above. Which of the following statements is true about the model?

A) The model is not based on any assumption.

B) The predictions of the model will hold for every individual.

C) The model describes the economic payoff to more education.

D) The model can be applied for maximum 10 years of additional education.

22) Which of the following implies that a model is an approximation?

A) The model is not based on any assumption.

B) The predictions of the model are mostly wrong.

C) The predictions of the model will hold in most cases but not all.

D) The predictions of the model cannot be tested with data.

23) Which of the following is a key property of models?

A) All economic models begin with assumptions.

B) Empiricism is not essential for testing models.

C) All models can be used for a limited time period only.

D) All models are consistent and do not make incorrect predictions.

24) Data on wages, education, and many other characteristics of the population that are available to anyone who wants to use it are called:

A) private-use data.

B) public-use data.

C) primary data.

D) secondary data.

25) In country X, the average yearly salary of 50-year-olds with 16 years of education is $50,275, while the average yearly salary of 50-year-olds with 12 years of education is $36,265. According to this data, four additional years of education is likely to be correlated with higher future wages of about:

A) 24 percent.

B) 38 percent.

C) 50 percent.

D) 88 percent.

26) The mean of a data set is the:

A) product of all values divided by the number of values.

B) sum of all different values divided by the number of values.

C) sum of all different values multiplied by the number of values.

D) difference between the highest value and the lowest value.

27) Which of the following statements is true about the mean of a series?

A) The mean is equal to zero when all the values are identical.

B) The mean is a commonly used technique for summarizing data.

C) The mean is less than all the individual observations in the data set.

D) The mean is calculated as the sum of all values multiplied by the number of values.

The following table shows the monthly wages of five different individuals.

Individual

Monthly Wage (in dollars)

1

200

2

450

3

640

4

700

5

800

28) Refer to the table above. What is the average monthly wage?

A) $450

B) $558

C) $612

D) $650

29) If a number greater than the mean of a series of observations is added to the series, the new mean is:

A) greater than the original mean.

B) smaller than the original mean.

C) same as the original mean.

D) either greater or smaller than the original mean depending on the number of observations in the series.

30) If a number equal to the mean of a series of observations is added to the series, the new mean is:

A) greater than the original mean.

B) smaller than the original mean.

C) same as the original mean.

D) either greater or smaller than the original mean depending on the number of observations in the series.