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(Evolution of the Household) Determine whether each of the following

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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 outsidethe home. Explain your answers.a. Higher levels of education for womenb. Higher unemployment rates for womenc. Higher average pay levels for womend. Lower demand for labor in industries that traditionally employ large numbers ofwomen2. (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?3. (Substitutes and Complements) For each of the following pair of goods, determinewhether the goods are substitutes, complements, or unrelated:a. Peanut butter and jellyb. Private and public transportationc. Coke and Pepsid. Alarm clocks and automobilese. Golf clubs and golf balls4. (Demand shifters) List five things that are held constant along a market demandcurve, and identify the change in each that would shift that demand curve to the rightthat is, that would increase demand.5. (Supply) Why is a firm willing and able to increase the quantity supplied as theproduct price increases?6. (Equilibrium) If a price is not an equilibrium price, there is a tendency for it to move toits equilibrium level. Regardless of whether the price is too high or too low to beginwith, the adjustment process will increase the quantity of the good purchased. Explain,using a demand and supply diagram.

 
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