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A Regression Estimates That a Worker's Hourly Productivity (P), Measured

Question 12

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A regression estimates that a worker's hourly productivity (P) , measured in units of output, is related to hourly wage (W) as follows: Pi = 4.5 + 0.2Wi. This indicates that


A) a firm raising their wage by $10 will reduce their productivity by 2 units.
B) a firm raising their wage by $10 will raise their quit rate by 2 units.
C) a worker will produce 2 units when the firm pays a wage of $10.
D) a worker will produce 4.5 units.

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