16. Parents use a number of methods to discipline their children. Two long standing

methods are "time outs" and "withholding toys."

a. Suppose that children are the same across households in terms of preferences over play time and toys, but the number and quality of toys they have depends on parental income. If toys are a normal good, which children have the most toys?

b) When parents withhold toys and other goods, do they want to exploit. childs marginal value or total value? Explain why exploiting the other value would be an ineffective punishment.

c) If family incomes are mostly driven by some type of wage labor, which parent have the highest time costs, wealthy parents or poor parents? Based on these time costs, which punishment is more costly to invoke for wealthy parents?

d) Given your answer to (a), (b), and (c) what should happen to the relative frequency of time outs to withholding toys as family income increases?

E) Given that income increases with age during the procreative years, how should twenty-something parents discipline relative to first time forty-something parents?