This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following best explains why the elasticity of supply of labor for an individual with a ... (Read 27 times)

azncindy619

  • Hero Member
  • *****
  • Posts: 562
on: Jul 1, 2018
Which of the following best explains why the elasticity of supply of labor for an individual with a Cobb-Douglas utility function (for consumption and leisure) is zero?
 a. Income and substitution effects are precisely offsetting.
  b. The elasticity of substitution of leisure for consumption is zero.
  c. Leisure is an inferior good.
  d. Consumption is subject to diminishing marginal utility.

Question 2

You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2 of the time, the claim rate will exceed 2 of warranty purchasers because
 a. adverse selection will lead those who are more reckless to purchase the warranty
  b. moral hazard will lead those who purchase to be more reckless
  c. you systematically underestimate product failure rates
  d. A and B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Shshxj

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

d


azncindy619

  • Member
  • Posts: 562
Reply 2 on: Jul 1, 2018
Gracias!

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
Indentured Labor from Asia Indentured Labor from Asia
Sequencing a large chromosome by individual sequence determination of cloned fragments in sequences Sequencing a large chromosome by individual sequence determination of cloned fragments in sequences
Digestion converts whole foods into individual nutrients that can be used by the body’s cells Digestion converts whole foods into individual nutrients that can be used by the body’s cells
There are many ways for an individual to monitor his or her blood glucose level There are many ways for an individual to monitor his or her blood glucose level
Video: Transcription - Introns and exons

For a complete list of videos, visit our video library