Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly housecleaning service. The value of the service to each of them is $50 and it costs $80 to hire a housecleaner
Suppose Bella is lazy and a spendthrift and Sefronia suspects that Bella will be willing to pay $80. What is Sefronia likely to do, given that she is as rational as any other person?
A) She might claim that she is not willing to pay for a housecleaner, hoping that Bella would pay the entire $80.
B) She will correctly rationalize that Bella's laziness and spendthrift ways are irrelevant to the decision at hand.
C) She will come clean and tell Bella that since Bella is lazy and a spendthrift she should pay a bigger share of the $80.
D) She might offer to do Bella's housecleaning chores if Bella would pay her $50.
A
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The long run is a period of:
a. at least one year. b. sufficient length to allow a firm to expand output by hiring additional workers. c. sufficient length to allow a firm to alter its plant size and capacity and all other factors of production. d. sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.
A labor supply elasticity of 1.4 means that a wage increase of:
A. 10 percent will increase the quantity of labor supplied by 14 percent. B. 10 percent will reduce the quantity of labor supplied by 14 percent. C. 14 percent will reduce the quantity of labor supplied by 10 percent. D. 14 percent will increase the quantity of labor supplied by 10 percent.
The demand for French Roast coffee is likely to be
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.
If the demand for a product decreases by 16 percent, the supply elasticity is 1.2, and demand elasticity is 0.80, then the equilibrium price will decrease by 6 percent.
Answer the following statement true (T) or false (F)