ECON MACRO
ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
Question
Chapter 3, Problem 1.1P

A

To determine

Whether higher levels of education for women will lead to an increase or decrease in the opportunity cost for mothers who decide not to work outside the home.

A

Expert Solution
Check Mark

Explanation of Solution

  1. The opportunity cost for a mother who chooses/decides not to work outside the home will be high if there are higher levels of education for women. This is because higher levels of education will ensure higher earnings for the women, thus the amount of earnings forgone by staying at home will increase for mothers, thus increased opportunity costs.
Economics Concept Introduction

Introduction:

Opportunity Costs: It is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action

B

To determine

Whether higher unemployment rates for women will lead to an increase or decrease in the opportunity costs for mothers who decide not to work outside the home.

B

Expert Solution
Check Mark

Explanation of Solution

If the unemployment rates are higher, then there will be a decline in the opportunity costs for staying at home. Higher unemployment rates will mean lesser opportunity of getting a job, and therefore lower opportunity cost.

Economics Concept Introduction

Introduction:

Opportunity Costs: It is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action

C

To determine

Whether higher average pay levels for women will lead to an increase or decrease in the opportunity costs for mothers who decide not to work outside the home.

C

Expert Solution
Check Mark

Explanation of Solution

The opportunity cost for forgoing job opportunities for staying at home will be higher if the average earnings of the women are higher as they will have to forgo higher amount of money.

Economics Concept Introduction

Introduction:

Opportunity Costs: It is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action

D

To determine

Whether lower demand for labor in industries that traditionally employ women will lead to an increase or decrease in the opportunity costs for mothers who decide not to work outside the home.

D

Expert Solution
Check Mark

Explanation of Solution

Lower demand for labor in industries that traditionally employ women will imply lower chances for women to get a job in the industry. Since they will not be able to get a job, the opportunity cost for staying at home is decreases in comparison to working.

Economics Concept Introduction

Introduction:

Opportunity Costs: It is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action

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Students have asked these similar questions
Determine whether each of the following would increase or decrease the opportunity costs for mothers who decide not to work outside the home. Explain your answers. Higher levels of education for women Higher unemployment rates for women Higher average pay levels for women Lower demand for labor in industries that traditionally employ women Many households supplement their food budget by cultivating small vegetable gardens. Explain how each of the following might influence this kind of household production: Both husband and wife are professionals who earn high salaries. The household is located in a city rather than in a rural area. The household is located in a region where there is a high sales tax on food. The household is located in a region that has a high property tax rate.
Would the owner of a profit-maximizing clothing store hire another worker for $85 per day if that worker added faster service, increasing sales and revenue by $80 per day? Why or why not? Explain your answer.
Which of the following is likely to shift the labor supply curve to the right, assuming all else equal?   A rise in the wage rate   A fall in the wage rate   A rise in the immigration of workers in search of better work opportunities   A fall in the population of a country due to a natural disaster
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  • Earning a college degree has some well-known and well-documented advantageous impacts on an individual. That is the motivation for people to delay their entry into the workforce for four or five years while they earn a baccalaureate degree. However, studies have shown significant positive impacts on the community, the state, and society caused by higher education. For example, states with more college-educated people also display better health conditions, higher earnings, lower crime, more innovation, and a general increased standard of living. In the language of our current module, higher education is a positive externality. The person deciding to attend college is doing it for the benefits she will receive from this new knowledge and experience. However, it is also true that there will be positive spillover effects on her community and state. During the course, we discovered that when an activity also produces a positive externality, the marginal social benefit (MSB) from that…
    Higher education: -is not generally worth the costs -is worth the additional expanse for bachelor's degrees and associate's degrees but not for master's degrees and higher. -is only worth the additional expense for professional degrees such as law and medical degrees.  -will generally result in lower lifetime earnings, ceteris paribus. -will generally result in higher lifetime earnings, ceteris paribus (all else equal)
    Q1: Which of the following would shift a market labor supply curve to the left? Group of answer choices an increase in the price of an output labor-saving technology a change in worker tastes so that workers want to spend more time home with family an increase in immigration
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