Rolls Royce may actually sell fewer cars at lower prices due to the "snob effect."
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that choice sets are convex. State assumptions about tastes that are necessary and sufficient to guarantee that the first order conditions are necessary and sufficient for identifying a true optimum.
What will be an ideal response?
Suppose you have just landed a job near the center of a city and you now need to decide where to live. If you live close to the city? center, your? round-trip commute will be 15 minutes. If you live in the distant? suburbs, your? round-trip commute will be 60 minutes. There are lots of workers like you who work downtown. Since there are only a limited number of apartments near the city center, these apartments will be allocated based on __________ that you face. This process is known as _____________.
Fill in the blank(s) with the appropriate word(s).
The labor demand curve of a purely competitive seller:
A. slopes downward because the elasticity of demand is always less than unity. B. slopes downward because of diminishing marginal productivity. C. is perfectly elastic at the going wage rate. D. slopes downward because of diminishing marginal utility.
Which of the following will likely cause a reduction in output per worker?
A) a reduction in education expenditures B) a reduction in the saving rate C) a reduction in on-the-job training D) all of the above