As the price of a Giffen good falls, the consumer will
A) purchase more units.
B) purchase fewer units.
C) not change the amount purchased.
D) There is not enough information to answer this question.
B
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The essential feature of a ________ is that it immediately fixes the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date
A) forward contract B) spot contract C) money contract D) bid contract
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?