There is no elasticity of substitution that is inconsistent with tastes being homothetic.
Answer the following statement true (T) or false (F)
True
Rationale:
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Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this
A) Mary has comparative advantages in activities. B) Tom has comparative advantages in both activities. C) Tom has a comparative advantage in cleaning windows. D) Mary has a comparative advantage in cleaning windows.
Which of the following items is not a factor of production?
a. labor b. land c. capital d. money
Which of the following demonstrates opportunity cost?
A. With a new strain of wheat, the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming. B. A tax cut increases people's purchases of consumer goods and decreases state expenditures on education. C. The ravages of World War II reduced Japan's ability to produce goods. D. Flora gets a 10% raise and increases her expenditures on movies.
The "good news" for consumers from monopolistic competition is ________ but the "bad news" for producers is that ________.
A. lower prices than monopoly; there are higher production costs B. lower prices than monopoly; there are higher travel costs C. lower prices than monopoly; there is less product variety D. greater product variety; product prices are higher