Explain how comparing two-earner and one-earner households can be used to illustrate the problem of using money income as a measure of well-being
What will be an ideal response?
Even though a two-earner family is likely to have a higher income than a one-earner family, time is much scarcer for a two-earner family. The two-earner family may have to spend money to purchase goods and services that a one-earner family could produce at home, for example, child care.
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A substantial appreciation of the U.S. dollar will likely result in, all else equal,
A) lower demand for U.S. products and layoffs of U.S. workers. B) increased demand for U.S. products and increased employment of U.S. workers. C) lower foreign currency prices of U.S. products in foreign countries. D) higher U.S. dollar prices of foreign products in the United States.
Which of these four-firm concentration ratios suggests that an oligopoly exists in an industry?
a. 5 percent b. 25 percent c. 50 percent d. 95 percent