It was once common for people to have servants who helped with the cooking and cleaning. Use the cost disease of the personal services dilemma to explain why these services have declined, even though one would expect an increased use in this age of the two-worker household.
What will be an ideal response?
Personal servants are a labor-intensive service, so their costs rise faster than prices in general. No doubt the demand is as great, or greater, than in the past, but the cost has become prohibitive for many households.
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In the above figure, at what price does a perfectly competitive firm make zero economic profit?
A) $4 per unit B) $8 per unit C) $12 per unit D) $16 per unit
If you have a bond that pays a lump sum at the time of maturity, it is
A) called a zero-coupon bond. B) worth more than a bond with coupon payments. C) riskier than a bond with coupon payments. D) a safer investment than a perpetuity.
When neither player has a dominant strategy,
A) game theory will not provide information. B) no Nash-Equilibrium exists. C) at least one Nash-Equilibrium exists. D) the game cannot be analyzed.
If a group of professionals successfully lobby the government to require workers in their profession to have a license, the most likely result will be a(n)
a. reduction in the supply of such professionals and a decrease in their wage rate b. reduction in the demand for such professionals and an increase in their wage rate c. reduction in the supply of such professionals and an increase in their wage rate d. reduction in the demand for such professionals and a decrease in their wage rate e. increase in the demand for such professionals and an increase in their wage rate