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In 1980, a Chinese woman would choose point F on IC7 and have 1 child over her child bearing years. | In 1980, a Chinese woman would choose point A on IC1 and have 4 children over her child bearing years. | Without interference, as China experienced economic growth, the fertility rate would have declined to the point where population stopped growing. Without interference, as China experienced economic growth, the fertility rate would have remained the same Without interference, as China experienced economic growth,the fertility rate would have increased leading to a large increase in population The substitution effect from increasing wages is show as the movement from A to F | The substitution effect from increasing wages is show as the movement from G to D The substitution effect from increasing wages is show as the movement from G to F | The substitution effect from increasing wages is show as the movement from F to D | The substitution effect from increasing wages is show as the movement from A to G | The income effect from rising GDP is shown as the movement from A to D The income effect from rising GDP is shown as the movement from A to G | The income effect from rising GDP is shown as the movement from F to D The income effect from rising GDP is shown as the movement from G to D

In 1980, a Chinese woman would choose point F on IC7 and have 1 child over her child bearing years. | In 1980, a Chinese woman would choose point A on IC1 and have 4 children over her child bearing years. | Without interference, as China experienced economic growth, the fertility rate would have declined to the point where population stopped growing. Without interference, as China experienced economic growth, the fertility rate would have remained the same Without interference, as China experienced economic growth,the fertility rate would have increased leading to a large increase in population The substitution effect from increasing wages is show as the movement from A to F | The substitution effect from increasing wages is show as the movement from G to D The substitution effect from increasing wages is show as the movement from G to F | The substitution effect from increasing wages is show as the movement from F to D | The substitution effect from increasing wages is show as the movement from A to G | The income effect from rising GDP is shown as the movement from A to D The income effect from rising GDP is shown as the movement from A to G | The income effect from rising GDP is shown as the movement from F to D The income effect from rising GDP is shown as the movement from G to D

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The red budget line depicts China in 1980 before there was any Communist Party policy about the number of children a Chinese woman could choose to have. Between 1980 and 2020, Chinese wages and GDP per capita (income) increased due to the abandonment of a Communist/Socialist economic system and a partial movement toward a free market capitalist system. The rotation from the red to the blue budget line depicts higher wages and the increased GDP per capita that resulted. China's One Child Policy All Other Goods (Income) 15K IC6 4K IC, 2020 IC3 1980 8. 1 4 Children (Fertility Rate)
Transcribed Image Text:The red budget line depicts China in 1980 before there was any Communist Party policy about the number of children a Chinese woman could choose to have. Between 1980 and 2020, Chinese wages and GDP per capita (income) increased due to the abandonment of a Communist/Socialist economic system and a partial movement toward a free market capitalist system. The rotation from the red to the blue budget line depicts higher wages and the increased GDP per capita that resulted. China's One Child Policy All Other Goods (Income) 15K IC6 4K IC, 2020 IC3 1980 8. 1 4 Children (Fertility Rate)
In 1980, a Chinese woman would choose point F on IC7 and have 1 child over her child bearing years. In 1980, a Chinese woman would choose point A on IC1 and have 4 children over her child bearing years. | Without interference, as China experienced economic growth, the fertility rate would have declined to the point where population stopped growing. Without interference, as China experienced economic growth, the fertility rate would have remained the same | Without interference, as China experienced economic growth,the fertility rate would have increased leading to a large increase in population | The substitution effect from increasing wages is show as the movement from A to F The substitution effect from increasing wages is show as the movement from G to D | The substitution effect from increasing wages is show as the movement from G to F The substitution effect from increasing wages is show as the movement from F to D The substitution effect from increasing wages is show as the movement from A to G The income effect from rising GDP is shown as the movement from A to D O The income effect from rising GDP is shown as the movement from A to G | The income effect from rising GDP is shown as the movement from F to D The income effect from rising GDP is shown as the movement from G to D | On the graph, children are a normal good O On the graph, children are an inferior good O On the graph, the substitution and income effects counteract each other and the overall effect of rising wages and income is the result of which effect is larger O On the graph, the substitution and income effects reinforce each other both causing an increase in the fertility rate. On the graph, the substitution and income effects reinforce each other both causing an decrease in the fertility rate.
Transcribed Image Text:In 1980, a Chinese woman would choose point F on IC7 and have 1 child over her child bearing years. In 1980, a Chinese woman would choose point A on IC1 and have 4 children over her child bearing years. | Without interference, as China experienced economic growth, the fertility rate would have declined to the point where population stopped growing. Without interference, as China experienced economic growth, the fertility rate would have remained the same | Without interference, as China experienced economic growth,the fertility rate would have increased leading to a large increase in population | The substitution effect from increasing wages is show as the movement from A to F The substitution effect from increasing wages is show as the movement from G to D | The substitution effect from increasing wages is show as the movement from G to F The substitution effect from increasing wages is show as the movement from F to D The substitution effect from increasing wages is show as the movement from A to G The income effect from rising GDP is shown as the movement from A to D O The income effect from rising GDP is shown as the movement from A to G | The income effect from rising GDP is shown as the movement from F to D The income effect from rising GDP is shown as the movement from G to D | On the graph, children are a normal good O On the graph, children are an inferior good O On the graph, the substitution and income effects counteract each other and the overall effect of rising wages and income is the result of which effect is larger O On the graph, the substitution and income effects reinforce each other both causing an increase in the fertility rate. On the graph, the substitution and income effects reinforce each other both causing an decrease in the fertility rate.
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