Like Rolex watches, there are some status goods that people want to own because they are expensive. In contradiction to the law of demand, if Rolex watches were less expensive, few status-seeking consumers would demand them. Reconcile status products or services with the law of demand. How does the existence of cheap knock-off imitations of Rolex watches fit with the law of demand?
Like Rolex watches, there are some status goods that people want to own because they are expensive. In contradiction to the law of demand, if Rolex watches were less expensive, few status-seeking consumers would demand them. Reconcile status products or services with the law of demand. How does the existence of cheap knock-off imitations of Rolex watches fit with the law of demand?
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Friedman insists that peopleâs incomes should be based on the prices of the goods and services that they produce. What is his rationale for this claim?
Question 6 options:
A. If incomes were not tied to prices, then there might be some people who could not afford basic necessities when they got more expensive
B. If incomes were not tied to prices, then producers of goods and services might not always be able to sell their expensive new products
C. If incomes were not tied to prices, then people would have no real incentive to adjust their behaviors in response to market conditions
D. If incomes were not tied to prices, then it would be difficult to get voters to care enough about the economy to advocate effective policies
In Hong Kong, Friedman found a number of highly-skilled laborers working in an ivory shop with very poor working conditions. How did he explain this phenomenon?
Question 7 options:
| A. The workers did not know how valuable their skills would be in the open market because their bosses misinformed them | |
| B. The workers had been prevented from organizing to demand improved working conditions by harsh national labor laws | |
| C. The workers were most concerned with earning higher wages, so they willingly accepted a worse working environment | |
| D. The workers knew that if they insisted on better working conditions, then they would be fired and replaced with ease |
