This topic contains a solution. Click here to go to the answer

Author Question: The assumption of rationality in economics implies that: a. people perfectly understand their own ... (Read 46 times)

anjilletteb

  • Hero Member
  • *****
  • Posts: 569
The assumption of rationality in economics implies that:
 a. people perfectly understand their own preferences.
  b. people can overcome economic obstacles in the best possible way.
  c. people can make accurate calculations and they have a perfect foresight.
  d. people make choices with an eye toward attaining objectives they have chosen.

Question 2

In labor markets, a change in the wage rate has both an income and a substitution effect. An increase in wages causes an increase in real income but at the same time it increases the relative price of leisure for the worker. If an increase in wage rate causes an individual to work less, _____.
 a. the income effect dominates the substitution effect
  b. the substitution effect dominates the income effect
  c. the substitution and income effects cancel each other out
  d. then leisure will be referred to as an inferior good
  e. the increase in wage rates will cause an increase in the supply of labor



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

b614102004

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

D

Answer to Question 2

a




anjilletteb

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Wow, this really help


nanny

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library