Author Question: In the two-period utility maximization model the opportunity cost of one unit of C1 is a. one unit ... (Read 86 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
In the two-period utility maximization model the opportunity cost of one unit of C1 is
 a. one unit of C0.
  b. 1 + r units of C0.
  c. 1/(1 + r) units of C0.
  d. cannot be determined without more information.

Question 2

The fact that more women have chosen to work as real wages rise is evidence that, for them
 a. leisure is an inferior good.
  b. income and substitution effects of higher real wages work in the same direction.
  c. income and substitution effects of higher real wages may work in opposite directions.
  d. income and substitution effects may work in opposite directions but that the substitution effect is stronger.



Pariscourtney

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

c

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

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.

For a complete list of videos, visit our video library