A manager will have the least confidence in an explanatory variable that
A) does not pass the F-test.
B) is expressed as a dummy variable.
C) does not pass the t-test.
D) constitutes only a small part of R2.
Question 2
If workers are in the backward-bending section of their labor supply curves, than an increase in the income tax rate will
A) increase the tax revenue and increase the number of hours worked.
B) increase the tax revenue and decrease the number of hours worked.
C) decrease the tax revenue and increase the number of hours worked.
D) decrease the tax revenue and decrease the number of hours worked.
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