Compare and contrast the relative elasticities that you are likely to find between toothpicks and furniture. Explain your answer
What will be an ideal response?
Toothpicks since they represent a relatively small part of a typical consumer's budget are likely to be inelastic in demand. Furniture by contrast is a big ticket item and is likely to be more price elastic since consumers are going to be more sensitive to a given price change.
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Screening and signaling in the labor market are inefficient
A) unless college costs are relatively low. B) unless they result in a better job match. C) because the benefits are spread out over many firms. D) because they raise the wage paid to all workers.
According to Olsen, the dictator that promotes growth is the:
a. tinpot b. roving bandit c. the stationary bandit d. all dictators are good for growth e. non dictator is good for growth