Explain how comparing two-earner and one-earner households can be used to illustrate the problem of using money income as a measure of well-being
What will be an ideal response?
Even though a two-earner family is likely to have a higher income than a one-earner family, time is much scarcer for a two-earner family. The two-earner family may have to spend money to purchase goods and services that a one-earner family could produce at home, for example, child care.
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For a single-price monopoly, marginal revenue is ________ when demand is elastic and is ________ when demand is inelastic
A) negative; negative B) negative; positive C) positive; negative D) positive; positive
Relying on piecemeal development projects or one-project-at-a-time investments may not propel an LDC out of poverty because
a. the World Bank only approves of the unbalanced growth development strategy and would finance no other strategy b. the World Bank only approves of the big-push development strategy and would finance no other strategy c. they do not include foreign investment or aid d. they lack forward linkages e. of the absence of an infrastructure
Which of these does not interfere with the price mechanism?
A. Usury laws B. Minimum wage laws C. Farm price supports, or price floors D. The law of supply and demand
Like nations, an individual who runs a deficit in daily transactions must make up for it through accommodating transactions to bring about an ultimate balance of credits and debits in his or her personal account. The best example of such a transaction is ______.
a. paying higher federal taxes b. increasing consumption c. making gifts to charities d. reducing personal savings