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 55 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
Thanks for the timely response, appreciate it

nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

The stages of labor and delivery. (A) During the dilation stage the cervix thins and dilates to 10 c The stages of labor and delivery. (A) During the dilation stage the cervix thins and dilates to 10 c
Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
Characteristics of the individual determine (a) whether they will be exposed to certain stressors ... Characteristics of the individual determine (a) whether they will be exposed to certain stressors ...
Percentage of Americans Living in Communities with a Fluoridated Water Supply, by State. 2012 Percentage of Americans Living in Communities with a Fluoridated Water Supply, by State. 2012
Who's Policing the Food Supply? Who's Policing the Food Supply?
Genome-wide SNP-based heritability for individual behavioral disorders Genome-wide SNP-based heritability for individual behavioral disorders
Video: TRH/TSH/Thyroid hormone

For a complete list of videos, visit our video library