2. "Rue, False or Uncertain. Set 1 Please label the following statements as True, False or Uncertain (i.e., sometimes true or sometimes false) and briey support your answer. Credit will be given for the supporting argument. (a) If the production function of good Y is homogeneous of degree one then its marginal cost function is constant. (b) According to household production we should expect to see customers spending less time waiting in line at fast food restauraan in nancial districts than in neighborhoods dominated by university students. (c) According to the quantityquality model of fertility, a technology innovation that reduces the shadow price of child services must increase both the quantity and quality of children demanded. (d) The Easterlin Hypothesis predicts that increases in income associated with the business cycle decrease expenditures on child education (a proxy for child quality) while the quantityquality model predicts a positive relationship between shortrun increases in income and measures of child quality. (e) When thinking about about reforms to restore scal solvency to the U.S. Social Security System it is better to reduce benets than increase Social Security taxes