Service Sector Outputs Could Be Expected to Increase in Price

question 112

True/False

Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows.

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Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or preference.

Nonlabor Income

Income received that does not come from working, such as investment income, social security benefits, or inheritance.

Leisure

Free time spent away from business, work, and domestic chores, often used for rest, recreation, and personal interests.

Wage Rate

The wage rate is the amount of money paid to a worker for a specified quantity of work, typically expressed on an hourly, daily, or piecework basis.