What do you think Eminem's incentive is to give a free show? Was his decision made in self-interest or in the social interest? Explain your answer
What will be an ideal response?
Eminem likely wants to allow his most enthusiastic fans the op-portunity to see him in concert. He also has the incentive to promote his album by the publicity he gets from having the free concert and the re-sulting massive demand for tickets. This publicity will lead to increased sales of his album and increased income to him.
Eminem's decision to give a free concert had elements of both self-interest and social interest. To the extent that his decision was motivated by the free publicity and rise in album sales, the decision was motivated by self-interest. However to the extent that a desire to allow his most enthusiastic fans the chance to see him perform, the decision also had elements of social interest.
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The substitution effect makes workers want to work less when the wage increases.
Answer the following statement true (T) or false (F)
A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 12 percent decrease in the enrollment
If the university wants to increase its total revenue, it should ________ tuition because the demand for education at this university is ________. A) raise; elastic B) not raise; elastic C) raise; inelastic D) not raise; inelastic
To economists, feelings such as peace, serenity, religious devotion, and self-esteem are captured in the concept known as _____
a. rational self-interest b. utility c. profit d. total revenue e. surplus
A worker in Vietnam can earn $6 per day making cotton cloth on a hand loom. A worker in the United States can earn $85 per day making cotton cloth with a mechanical loom. What is the likely explanation for the difference in wages?
a. U.S. textile workers belong to a union, whereas Vietnamese textile workers do not belong to a union. b. There is little demand for cotton cloth in Vietnam and great demand in the U.S. c. Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. d. Vietnam has a low-wage policy to make its textile industry more competitive in world markets.