It was once common for people to have servants who helped with the cooking and cleaning. Use the cost disease of the personal services dilemma to explain why these services have declined, even though one would expect an increased use in this age of the two-worker household
Personal servants are a labor-intensive service, so their costs rise faster than prices in general. No doubt the demand is as great, or greater, than in the past, but the cost has become prohibitive for many households.
You might also like to view...
When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power. This statement describes the:
a. substitution effect. b. income effect. c. consumer equilibrium effect. d. price effect.
If it's possible to eliminate the problems created by externalities, why do they persist?
A. Correcting externalities would always reduce total surplus. B. It is difficult to measure external benefits and costs. C. The benefits of correcting the externalities generally exceed the costs. D. None of these statements is true.
The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _________________________ and the _________________________.
Fill in the blank(s) with the appropriate word(s).
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. decrease in the money supply when there is a recession. c. increase in government expenditures when there is a recession. d. All of the above are correct.