According to the cost disease of the personal services, service activities that require direct personal contact
a. tend to fall in price relative to other goods and services.
b. tend to rise in price relative to other goods and services.
c. follow price patterns similar to other goods and services.
d. tend to move up and down in price ignoring the rest of the market.
b
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When Fed policy is being used to offset a contractionary gap, which of interest rates, investment, net exports and aggregate demand moves in the opposite direction from the others? a. Interest rates
b. Investment. c. Net Exports. d. Aggregate demand..
The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a. equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources. b. equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits. c. equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits. d. equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.