Consider the following two equations to describe labor markets in various sectors of the economy Nd = β0 + β1 + u
Ns = γ0 + γ1 + v
Nd = Ns = N
A)W/P is exogenous,n is endogenous
B)Both n and W/P are endogenous
C)n is exogenous,W/P is endogenous
D)the parameters cannot be estimated because it would require two equations to be estimated at the same time (simultaneously)

Question

Consider the following two equations to describe labor markets in various sectors of the economy Nd = β0 + β1  + u
Ns = γ0 + γ1  + v
Nd = Ns = N
A)W/P is exogenous,n is endogenous 
B)Both n and W/P are endogenous 
C)n is exogenous,W/P is endogenous 
D)the parameters cannot be estimated because it would require two equations to be estimated at the same time (simultaneously)

Quizplus · Accepted Answer

The Answer of Consider the following two equations to describe labor markets in various sectors of the economy Nd = β0 + β1  + u
Ns = γ0 + γ1  + v
Nd = Ns = N
A)W/P is exogenous,n is endogenous 
B)Both n and W/P are endogenous 
C)n is exogenous,W/P is endogenous 
D)the parameters cannot be estimated because it would require two equations to be estimated at the same time (simultaneously)

Consider the Following Two Equations to Describe Labor Markets in Various