If Someone Has a Cobb-Douglas Utility Function and No Income

question 42

True/False

If someone has a Cobb-Douglas utility function and no income from any source other than labor earnings, then an increase in wages will not change the amount that person chooses to work.

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Definitions:

Anchoring

A cognitive bias that describes the tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions.

Person Schemas

Cognitive structures that represent one's knowledge and expectations about others, influencing how we process information about them.

Fiske and Taylor

Researchers known for their work in social cognition, exploring how people think about themselves and others in a social context.

Language

A system of sounds that convey meaning because of shared grammatical and semantic rules.