In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from

For the past year, Teddy has had a part-time job at which he is willing to work 10 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage

As a result of the wage increase, Teddy is now willing to work 15 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect. A) work; greater B) work; less C) leisure; greater D) leisure; less

Consider the following earnings function:

ahei= ?0 + ?1×DFemmei + ?2×educi+...+ ui versus the alternative specification ahei= ?0 × DMale + ?1×DFemmei + ?2×educi+...+ ui where ahe is average hourly earnings, DFemme is a binary variable which takes on the value of "1" if the individual is a female and is "0" otherwise, educ measures the years of education, and DMale is a binary variable which takes on the value of "1" if the individual is a male and is "0" otherwise. There may be additional explanatory variables in the equation. a. How do the ?s and ?s compare? Putting it differently, having estimated the coefficients in the first equation, can you derive the coefficients in the second equation without re-estimating the regression? b. Will the goodness of fit measures, such as the regression R2, differ between the two equations? c. What is the reason why economists typically prefer the second specification over the first? What will be an ideal response?