Easterlin (1968, 1987) argues that as the relative price of children rises,
(a) the average household demands fewer of them.
(b) society, at large, demands fewer of them.
(c) society, at large, demands more of them.
(d) nothing happens since the demand for children is not influenced by price.
(a)
You might also like to view...
The "new classical" economics took advantage of the disarray and partial eclipse of Keynesian economics to reestablish macro model-building based on the assumption of price ________ and market ________
A) flexibility, clearing B) flexibility, non-clearing C) stickiness, clearing D) stickiness, non-clearing
In a floating exchange rate system, when national savings falls then the equilibrium exchange rate
a. falls and the trade balance falls. b. falls and the trade balance rises. c. rises and the trade balance falls. d. rises and the trade balance rises.
Two CEOs from different firms in the same market collude to fix the price in the market. This action violates the
a. Clayton Act of 1914. b. Sherman Antitrust Act of 1890. c. Crandall-Putnam ruling of 1983. d. Jackson-Microsoft ruling of 2000.
Wes works as a delivery man and can work as many hours as he likes for $12 an hour. He typically works 40 hours a week. Recently, his pay has been cut, and Wes decides to work:
A. less hours, because the income effect dominates his labor supply decision. B. the same amount, because the price effect dominates his labor supply decision. C. more hours, because the price effect dominates his labor supply decision. D. more hours, because the income effect dominates his labor supply decision.