In practice, the hedonic price method
a. is easy to use because attribute data are always readily available
b. estimates the prices of the product’s characteristics
c. can be implemented with a simple empirical model
d. has never been used by empirical economists
b. estimates the prices of the product’s characteristics
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Many middle-to-older-aged men now claim they "need" Viagra (the male impotency wonder drug) for an enjoyable sex life. The economic way of thinking predicts
A) more men would be likely to claim they need Viagra if the price per pill were much lower (say two cents each) compared to the current price. B) fewer men would be likely to claim they need Viagra if the price per pill were much higher (say, two hundred dollars each) compared to the current price. C) other things constant, more prescriptions would be written if the price of Viagra falls significantly. D) other things constant, fewer prescriptions would be written if the price of Viagra rises significantly. E) all of the above are true.
The marginal cost of educating a student is $30,000, and this cost is independent of the number of students. The figure above shows the marginal private benefit that a student receives from education
If schools are competitive, how many students are enrolled? A) zero B) 20,000 C) 50,000 D) It depends on the demand.
The difference between money and income is that
A) money is a flow and income is a stock. B) money is a stock and income is a flow. C) there is no difference—money and income are both stocks. D) there is no difference—money and income are both flows.
As the baby boom ended, fewer families had young children and, as a consequence, the
a. demand curve for preschool services shifted outward b. demand curve for preschool services shifted inward c. supply curve for preschool services shifted outward d. supply curve for preschool services shifted inward e. supply and demand curves for preschool services remained constant