EBK MICROECONOMICS
10th Edition
ISBN: 8220100543425
Author: MELVIN
Publisher: Cengage Learning US
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Question
Chapter 4, Problem 1E
To determine
Whether a family is a household or household is a family
Expert Solution & Answer
Answer to Problem 1E
According to the U.S. Census Bureau definition, a family and a household are not the same thing. A household is a broader concept than a family. There can be a family household or a non-family household.
Explanation of Solution
A household is a concept where a single or multiple number of people occupy a housing unit. All households need not be a family. It may be a cluster of single or unrelated people living at one place. A family, on the other hand, is a place where people are related to each other either by birth or marriage, or adoption. A family may also contain unrelated people.
Economics Concept Introduction
Concept Introduction:
Household − One or more people occupying a housing unit comprises a household.
Family − Two or more individuals who are connected by birth, adoption or marriage, constitutes a family. Although, they may also include other unrelated people.
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1. Imagine a society that produces military goods
and consumer goods, which we'll call "guns"
and "butter."
a. Draw a production possibilities frontier for
guns and butter. Using the concept of
opportunity cost, explain why it most likely
has a bowed-out shape.
b. Show a point that is impossible for the
economy to achieve. Show a point that is
feasible but inefficient.
c. Imagine that the society has two political
parties, called the Hawks (who want a strong
military) and the Doves (who want a smaller
military). Show a point on your production
possibilities frontier that the Hawks might
choose and a point the Doves might choose.
d. Imagine that an aggressive neighboring
country reduces the size of its military. As a
result, both the Hawks and the Doves reduce
their desired production of guns by the same
amount. Which party would get the bigger
"peace dividend," measured by the increase in
butter production? Explain.
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Chapter 4 Solutions
EBK MICROECONOMICS
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