14. Evolution of the Household Determine whether each of the 16. Government Complete each of the following sentences: following would increase or decrease the opportunity costs for a. Goods that are nonrival and nonexclusive are known as mothers who decide not to work outside the home. Explain your answers. b. are cash or in-kind benefits given to in- a. Higher levels of education for women dividuals as outright grants from the government. b. Higher unemployment rates for women C. A(n) confers an external benefit on third c. Higher average pay levels for women parties that are not directly involved in a market transaction. d. Lower demand for labor in industries that traditionally d. _ refers to the government's pursuit of full employ women employment and price stability through variations in taxes 15. Household Production Many households supplement their and government spending. food budget by cultivating small vegetable gardens. Explain 17. Tax Rates Suppose taxes are related to income level as follows: how each of the following might influence this kind of house- hold production: Income Taxes a. Both husband and wife are professionals who earn high $1,000 $200 salaries. $2,000 $350 b. The household is located in a city rather than in a rural $3,000 $450 area. c. The household is located in a region with a high sales tax on a. What percentage of income is paid in taxes at each level? food. b. Is the tax rate progressive, proportional, or regressive? d. The household is located in a region with a high property c. What is the marginal tax rate on the first $1,000 of income? tax rate. The second $1,000? The third $1,000?1. Households as Demanders of Goods and Services Classify 5. Sole Proprietorships What are the disadvantages of the sole each of the following as a durable good, a nondurable good, proprietorship form of business? or a service:v 6. Cooperatives How do cooperatives differ from typical a. A gallon of milk businesses? b. A lawn mower c. A smartphone 7. Case Study: User-Generated Products Why are users willing d. A manicure to help create certain products even though few, if any, users are e. A pair of shoes paid for their efforts? f. An eye exam 8. Government Often it is said that government is necessary g. A personal computer when private markets fail to work effectively and fairly. Based h. A neighborhood teenager mowing your lawn on your reading of the text, discuss how private markets might 2. Evolution of the Firm Explain how production after the break down. Industrial Revolution differed from production under the 9. Externalities Suppose there is an external cost, or negative cottage industry system. externality, associated with production of a certain good. 3. Household Production What factors does a householder What's wrong with letting the market determine how much of consider when deciding whether to produce a good or service at this good will be produced? home or buy it in the marketplace? 10. Government Revenue What are the sources of government 4. Corporations How did the institution of the firm get a boost revenue in the United States? Which types of taxes are most from the advent of the Industrial Revolution? What type of important at each level of government? Which two taxes business organization existed before this? provide the most revenue to the federal government
