If Tastes Are Homothetic, There Exists a Utility Function That

question 24

True/False

If tastes are homothetic, there exists a utility function that represents those tastes and that gives rise to an expenditure function which is homogeneous of degree 1 in utility.

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that collectively represent millions of workers in the United States.

House of Commons

The lower house of the Parliament of the United Kingdom, responsible for making and passing laws.

Employer Demands

Requirements or conditions set by employers during negotiations with employees or unions regarding salaries, working conditions, and other employment terms.

Voluntaristic System

An approach to labor relations in which union membership and worker representation are matters of individual choice rather than legal requirement.