The "cost disease of personal services" phenomenon predicts that the price of tickets to baseball games and cell phone rates will increase at approximately the same rate.

Question

Quizplus · Accepted Answer

The cost disease of personal services refers to the phenomenon where certain industries, such as healthcare and education, experience rising costs due to the labor-intensive nature of the services provided. This does not necessarily mean that all industries will experience the same rate of increase in prices. Therefore, the statement that baseball game ticket prices and cell phone rates will increase at the same rate is false.

The "Cost Disease of Personal Services" Phenomenon Predicts That the Price