Assignment:
Your completed Homework assignment should be at least three to four pages in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style.
1. (Evolution of the Household) Determine whether each of the following would increase or decrease the opportunity costs for mothers who choose not to work outside the home. Explain your answers.
a. Higher levels of education for women
b. Higher unemployment rates for women
c. Higher average pay levels for women
d. Lower demand for labor in industries that traditionally employ large numbers of women
10. (Tax Rates) Suppose taxes are related to income as follows:
Income Taxes
$1000 $200
$2000 $350
$3000 $450
a. What percentage of income is paid in taxes at each level?
b. Is the tax rate progressive, proportional, or regressive?
c. What is the marginal tax rate on the first $1000 of income? The second $1000?
The third $1000?
2. (Substitutes and Complements) For each of the following pair of goods, determine whether the goods are substitutes, complements, or unrelated:
a. Peanut butter and jelly
b. Private and public transportation
c. Coke and Pepsi
d. Alarm clocks and automobiles
e. Golf clubs and golf balls
3. (Demand Shifters) List five things that are held constant along a market demand curve, and identify the change in each that would shift that demand curve to the right---that is, that would increase demand.
4. (Supply) Why is a firm willing and and able to increase the quantity supplied as the product price increases?
12.(Equilibrium) Assume the market for corn is depicted as in the table that appears below
a. Complete the table below:
Price Qty Demanded Qty Supplied Surplus/Shortage Will Price Rise or Fall?
Per (Millions of (Millions of
Bushel bushels) bushels)
$1.80 320 200 _______ ________
$2.00 300 230 _______ ________
$2.20 270 270 _______ ________
$2.40 230 300 _______ ________
$2.60 200 330 _______ ________
$2.80 180 350 _______ ________
b. What market pressure occurs when quantity demanded exceeds quantity supplied? Explain.
c. What market pressure occurs when quantity supplied exceeds quantity demanded? Explain
d. What is the equilibrium price?
e. What could change the equilibrium price?
f. At each price in the first column of the table, how much is sold?