Using an indifference map, explain why U.S. parents with two children both of the same sex are more likely to go for a third child than are parents with one child of each gender.
Answer to relevant QuestionsSam is subject to a 40 percent tax on income, and her after-tax income is $ 90,000, as in Figure. Now sup-pose the government permits her to deduct her contributions (to Oscar) from her income before the 40 percent tax rate ...Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright cash transfer of the same cost. Why do you think it is not converted into an explicit cash ...If the per-unit price of college education rises and the prices of all other items fall, is it possible for the consumer to end up on the same indifference curve as before the price changes? If so, will the consumer be ...Explain how a bandwagon effect might speed up the rate at which DVD players are adopted by consumers. Do likewise for the case of cable television subscriptions.How can the government reduce a consumer’s consumption of schooling by providing schooling at no cost? Explain in words and show in a diagram.
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