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Assume two individuals, A and B, are considering marriage, and each face the same amount of hours a week to be split between market-labor and home-labor. Assume that A can make $20 of market goods per week and $10 household goods per week; assume B can make $10 of market goods per week and $20 of household goods per week. Graphically depict a situation where, upon marriage, B specializes in the production of one good and A splits their time between market and home labor. (Clearly identify the intercepts and kink in their collective production possibilities curve.)
Assume A is a man and B is a woman. We know that the participation rates for men have been decreasing, while at the same time they have increased for women over the 20th C. Assume that the household starts with each individual specializing in the production of different goods. Graphical depict how an increase in the market-labor wage of B could increase her supply of labor (to the market) and at the same time decreases the supply of labor (to the market) for men.
Assume that A and B, upon marriage, specialize in the production of different goods. Consider the possibility that there is effectively no difference between people's productivity when it comes to the production of household goods. Graph their collective PPF using the values in (a) except that maximum amount of household goods produced by each is 10 units.
Assume that, with the values in (a), A and B specialize in the production of different goods upon marriage. Draw two graphs. The first graph shows a bilateral increase in wage inequality (steeper PPF for A and shallower PPF for B), specialization in different goods, but the household has lower utility than if there was specialization in (a).
You make a monthly deposit of $1,000 into a saving account for the next 10 years. How much can you withdraw immediately after your last deposit if your saving account pays 6% per y
When a country abandons its national currency and adopts the currency of the United States, this is known as: A) A floating exchange rate system. B) Dollarization. C) A speculat
The weights of a sample of five boxes being sent by FedEx are: 48, 24, 28, 12, and 40. (a) Compute the range. (b) Compute the mean deviation. (c) Compute the standard devi
A firm's current profits are $1,300,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percen
A recent article estimated that the elasticity of the rate of gonorrhea with respect to the price of beer is about 0.8. If this estimate is correct, are unprotected sex and beer su
If 5000 units are sold and income increases by 20% with an income elastiticy of +2, what will the number of sales units be after the increase
Aggregate Supply and Demand 1. The equation for expenditure GDP is 2. Sketch a fully labeled aggregate supply and demand diagram for an economy that is in full employment equ
Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how decisions on the number of chickens to b
Now we will analyse how macroeconomic variables fit together and present models which explain the main macroeconomic variables. Using these models we can, for instance, analyse
circular flow of income in a single sector,two sector,three sector and four sector
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