4. The high cost of child care prevents some poor mothers from working. Consequently, countries around the world provide child care subsidies (to de- crease the hourly rate of day care) to poor parents. Instead of subsidizing the price of child care, governments could provide lump-sum payments (i.e. give extra money) for poor parents to spend on day care or on all other goods (as- sume "all other goods" (such as food and housing) is a single composite good). Which approach benefits poor families most? Analyze this question using an indifference curve-budget line analysis.

4. The high cost of child care prevents some poor mothers from working. Consequently, countries around the world provide child care subsidies (to de- crease the hourly rate of day care) to poor parents. Instead of subsidizing the price of child care, governments could provide lump-sum payments (i.e. give extra money) for poor parents to spend on day care or on all other goods (as- sume "all other goods" (such as food and housing) is a single composite good). Which approach benefits poor families most? Analyze this question using an indifference curve-budget line analysis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4. What's wrong with this way of thinking? "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. By 2000, the price of the same type of calculator had declined to less than $5. Yet business firms produced and sold many more calculators in 2000 than they did in 1972. Lower prices did not result in less production or in a decline in the number of calculators supplied." 99
Aji used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4. If the price of X rose to $4 and the price of Y rose to $9, how much would Aji's income have to rise so that she could still afford her original bundle a. $700 b. $450 c. $350 d. $1,050
In Colorada Snack shop , there are only 3 goods for sale: Dumplings, Ramen and diet drinks. The following table shows the prices and quantities produced of these goods in 2017, 2018, and 2019: 2017 2018 2019 p Q P Q P Q Dumplings 7 500 10 600 12 700 Ramen 6 300 6.5 200 7 310 Diet Drinks 3 1,000 2.5 1,200 2.8 1,350 The average consumption basket for a typical family in colorada is 8 dumplings , 2 ramen, and 2 diet Cokes. Compute the consumer price index (CPI) for each of the three years, using 2017 as the base year. 1b. Use the CPI you computed in (a) to calculate the rate of inflation from 2017 to 2019 and from 2018 to 2019.
Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a PB&J sandwich she always uses 4 tablespoons of peanut butter and 2 tablespoons of jelly. Suppose that the price of peanut butter is $0.05 per tablespoon and that the price of jelly is $0.15 per tablespoon. Simone lives above a bakery and receives free day old bread from her baker friend. The amount of Simone's income spent on PB&J sandwiches is $8 a week. Which of the following statements is true? A. Simone's indifference curves for peanut butter and jelly are normal indifference curves. B. Simone's indifference curves for peanut butter and jelly are straight lines, since she always eats peanut butter and jelly in a particular combination. C. Simone's indifference curves for peanut butter and jelly each have a right angle, since peanut butter and jelly are perfect complements for Simone. D. Simone maximizes her utility from PB&J sandwiches by consuming 8 sandwiches a we O E. Answers (C) and (D) are both true.
6. All else equal, airline tickets are typically more expensive if bought close to the date of travel. Give an economic explanation for why this is the case.
Welfare and Efficiency – End of Chapter Problem Suppose the daily demand curve for gasoline is as provided in the accompanying graph. a. Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Consumer surplus = $ million b. Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus. New consumer surplus = $ million
Does someone mind helping me with these problems? I don't understand them. Thank you!
Suppose that you have data at the individual level that includes information on the price of a doctor visit an individual and the number of doctor visits they go to in a given year. For simplicity, let's say that those with more generous plans pay less for a doctor's visit, while those with less generous plans pay more for a visit. You graph the relationship between the price individual pays for doctor visits against the number of visits, and you see a downward sloping line; let's call this "measured demand." The problem of "endogeneity" discussed this week could arise here if individuals who know they go to the doctor frequently buy more generous coverage while those who know they rarely go to the doctor purchase less generous coverage. This would imply that the "true" demand curve (if we were to account for endogeneity) is_________ the same as. less inelastic than the measured demand curve. more inelastic than the measured demand curve.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Which of the following statements are true and which are false? e. Goods and services have utility because they have the power to satisfy human wants and needs. f. The demand for necessities is more inelastic than the demand for luxuries.
3. Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. a. Given this information, construct the equation for Akua's Budget Line. b. The following are the bundles that Akua can afford with her income: Yoghurt Bread 10 80 20 Fill the blanks in the table with the quantities that will exhaust Akua's income. c. Akua gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10? d. Assume that prices are the same as used in part a. If the marginal utility of a Yoghurt is 20, what is the marginal utility of Bread if she is maximizing her utility? e. Now assume that Yoghurt and Bread are compliments for Akua. For her to consume all her income of GHS…
Solve the attahment.