Why study econometrics? Rare in economics(and many other areas without labs! ) to have experimental data Need to use nonexperimental. or observational data to make inferences eImportant to be able to apply economic theory to real world data Economics 20- Prof. Anderson
1. Which of the following best explains why wages in service industries have increased along with wages in manufacturing industries, even though service industry productivity has not increased as much? because
1. A situation is efficient if a. no change can help some people without hurting others. b. the gain for some people offsets the loss for others. .C. the gain for some people more than offsets the loss to others. d. consumer surplus is maximized. e. producer surplus is maximized