Answer to Question #215392 in Economics for Meher

Question

Select True or False.

1.    When we adjust income per capita based on Purchasing Power Parity (PPP), differences in income per capita between rich and poor countries tend to decrease because non-traded goods are cheaper in poorer countries.

2.    Selection bias will be zero if the average value of the observed outcome variable of the control group is equal to the average value of the outcome variable of the treatment group if the treatment group had not received the treatment.

3.    The  measure can be alternatively defined as the cost of bringing everyone up to the poverty line in any given point in time.

Answer 1

1.  True

2.    False

3.    True