Author Question: After reading an economics textbook about labor supply and utility maximization, Amelia Ruiz said, I ... (Read 17 times)

tatyanajohnson · **on:** Jun 30, 2018

After reading an economics textbook about labor supply and utility maximization, Amelia Ruiz said, I don't allocate my time like that.. Her professor replied,
a. You caught us. Economists do not know what they are talking about..
b. This proves that you will always choose to spend your time in nonmarket work..
c. You act as if you allocated your time to derive the same expected net marginal utility from the last unit of time spent in each alternative use..
d. Don't you want to use your unlimited resources to satisfy your finite wants?
e. It is obvious that labor supply is a derived demand based on marginal revenue product..

Question 2

International trade between countries typically produces a winner and a loser. Generally, it is the economically more advanced country that gains at the expense of the less developed nation.
a. True
b. False