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Solved Questions for Macroeconomics

Institution: University Level

Course: Macroeconomics

Content Category: Class Notes

Posted By: chris10

Document Type: PDF

Number of Pages: 9

Price: KES 259
 
    

Views: 1389     Downloads: 0

Summary

Solved questions and answers for macroenomics. High quality questions with answers.

Brief Overview:

Chapter 3, Question 1
(Evolution of the household) Determine whether each of the following would increase or decrease the opportunity cost for mothers who choose not to work outside the home. Explain your answers.
a. Higher level of education for women
The opportunity cost of an item refers to the value of the best alternative that is forgone (McEachern, 2006). Accordingly, a fundamental principle of economics is that every choice has an opportunity cost (Taylor, 2014). Higher levels of education for women would increase the opportunity cost for mothers who choose not to work outside the home. This is because the mothers could be making more money in the workplace if they hard higher levels of education.
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