(a)
Whether higher levels of education for women will lead to an increase or decrease in the
Explanation of Solution
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.
Introduction:
Opportunity costs is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action.
(b)
Whether higher
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.
Introduction:
Opportunity costs is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action.
(c)
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.
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.
Introduction:
Opportunity costs is the cost in terms of forgone benefit that a person could have received by choosing an alternative course of action
(d)
Whether lower
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.
Introduction:
Opportunity costs 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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Chapter 3 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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