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5. (5 points) Social Infrastructure You are interested in estimating the effect of health infrastructure on output per capita, and would like to know if this accounts for cross-country variation in Y/L. Suppose that you only have data on the number of hospital beds per capita as a measure of health infrastructure in different countries. List 2 main reasons why running a regression of Y;/L; on this measure could give biased estimates. What is the likely direction of the bias? (Provide a short explanation.)

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Which one of the following situations is not true? A. Indifference curves slope downwards because MU, >O and MU, >O B. Indifference curve can be vertical straight line if MU > O and MUY = 0 C. Indifference curve can be a horizontal straight line if MUX = 0 and MU, >O D. Indifference curve will be a horizontal straight line if MU, = 0 and MU,