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American high school students are awarded National Merit Scholarships on the basis of PSAT scores, a test taken by most college-bound high school juniors. You are asked to investigate whether students who win National Merit Scholarships are more likely to go to graduate school.
(a) What is the problem if you just compare graduate school enrollment rates between stu- dents who won the scholarship and those who did not?
(b) Can you propose an empirical strategy to answer the research question?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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