According to the cost disease of the personal services, service activities that require direct personal contact
A. tend to fall in price relative to other goods and services.
B. tend to rise in price relative to other goods and services.
C. follow price patterns similar to other goods and services.
D. tend to move up and down in price ignoring the rest of the market.
Answer: B
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The income-expenditure model of real GDP determination is due to the work of
A) Adam Smith. B) J. B. Say. C) John Maynard Keynes. D) Roger Miller.
Variable costs are:
A. costs that don't depend on the quantity of output produced. B. costs that depend on the quantity of output produced. C. one-time costs. D. None of these is true.
Robert needs to raise $100,000 to pay for an operation that will save his wife's life. The only way he can raise the money is to sell one of his kidneys to a wealthy man in need of a kidney transplant. This is an example of a trade that:
A. may benefit each party but may not be permitted in a society that believes selling body parts is morally wrong. B. would never be permitted in any society. C. may benefit each party but cannot be considered efficient. D. should be permitted as long as each party enters into the agreement voluntarily.
You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over
A. equity. B. stability. C. efficiency. D. economic growth.