Asked by
Astro Exotix
on Dec 08, 2024
Verified
Related to the Economics in Practice on p. 727: Refer to Scenario 22.5. Using the difference-in-differences method, what is the estimated effect of the increase in the usage tax on the average number of minutes used monthly per resident in Zoink?
A) -225
B) -425
C) -650
D) -1,075
Difference-In-Differences
is an econometric technique used to estimate the effect of a specific intervention or treatment by comparing the changes in outcomes over time between a treatment group and a control group.
Usage Tax
A tax imposed on the use of goods or services, typically applied to regulate or discourage certain behaviors.
Average Number
A statistical measure representing the sum of values divided by the count of those values.
- Discern the methodology of difference-in-differences and its utilization in assessing the impacts of policies.
- Acquire knowledge about the impact of tax modifications on the behavior of consumer expenditure.
Verified Answer
JJ
Learning Objectives
- Discern the methodology of difference-in-differences and its utilization in assessing the impacts of policies.
- Acquire knowledge about the impact of tax modifications on the behavior of consumer expenditure.