Critics of advertising sometimes argue that the overall effect of advertising is to make people believe that possessing lots of material goods is the only route to happiness. These critics also believe that this is a misleading view of happiness. Hence, these critics:
A. worry that consumers' choices have positive externalities.
B. worry that the resulting increase in consumption increases total utility.
C. reject the idea that all is well if the economy produces what people demand.
D. believe that distributional issues are the main problem with any economy.
Answer: C
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The Equal Pay Act of 1963 requires that men and women be given equal pay for equal work in the same establishment
Most people agree that gender discrimination in the workplace is unfair, but many economists have criticized advocates of comparable worth. Is paying the same wages for jobs that have comparable worth mandated by the Equal Pay Act? Why don't most economists support proposals to force employers to pay their male and female employees based on comparable worth rules?
You are told that the price elasticity of demand for widgets is -0.75, the income elasticity of widgets is 2, and the cross-price elasticity of widgets and gadgets is 4. Carefully explain what information you can gather from each of these figures
What will be an ideal response?