Increase In Opportunity Cost
Chapter 3
1. Opportunity cost can be defined as the value of something you gave up in order to gain, or acquire something else (McEachern, 2015, p. 24).
A. With the definition in mind, higher levels of education for women would be an increase in opportunity cost. A woman with a higher level of education allows one to make more money in the work place than if she had little to no education.
B. Higher Unemployment rates for women would be a decrease in opportunity costs as it would not pay for her to work outside the home. If she were to choose to work outside of the home she would have a smaller take home pay, after settling for a job with less wages and paying for daycare.
C. Higher average pay levels for women would be an increase in opportunity costs because they would have a good chance at finding a job, with decent wages. When there is a need for laborers in the work force, the wages tend to rise.
D. …show more content…
When there is a lower demand for laborers wages tend to decrease, this would be the same answer as number B, it is a decrease in opportunity costs. In order for her to obtain a job they would need to accept a lower wage and with the expense of childcare, it would not pay for her to work outside the home as her finally take home pay after expenses to be able to work would be minimally.
10. Income: 1000 Taxes 200 Income: 2000 Taxes 350 Income 3000 Taxes 450
a. The percentage of income paid in taxes at an income of $1000 is 20 %.
The percentage of income paid in taxes at an income of $2000 is 17.5%.
The percentage of income paid in taxes at an income of $3000 is 15%. B. The Tax rate is regressive as the incomes increase the percentage paid in taxes decreases (McEachern, 2015, p. 48). c. The first $1, 000 it is taxes divided by income, which equals 20
1. Opportunity cost can be defined as the value of something you gave up in order to gain, or acquire something else (McEachern, 2015, p. 24).
A. With the definition in mind, higher levels of education for women would be an increase in opportunity cost. A woman with a higher level of education allows one to make more money in the work place than if she had little to no education.
B. Higher Unemployment rates for women would be a decrease in opportunity costs as it would not pay for her to work outside the home. If she were to choose to work outside of the home she would have a smaller take home pay, after settling for a job with less wages and paying for daycare.
C. Higher average pay levels for women would be an increase in opportunity costs because they would have a good chance at finding a job, with decent wages. When there is a need for laborers in the work force, the wages tend to rise.
D. …show more content…
When there is a lower demand for laborers wages tend to decrease, this would be the same answer as number B, it is a decrease in opportunity costs. In order for her to obtain a job they would need to accept a lower wage and with the expense of childcare, it would not pay for her to work outside the home as her finally take home pay after expenses to be able to work would be minimally.
10. Income: 1000 Taxes 200 Income: 2000 Taxes 350 Income 3000 Taxes 450
a. The percentage of income paid in taxes at an income of $1000 is 20 %.
The percentage of income paid in taxes at an income of $2000 is 17.5%.
The percentage of income paid in taxes at an income of $3000 is 15%. B. The Tax rate is regressive as the incomes increase the percentage paid in taxes decreases (McEachern, 2015, p. 48). c. The first $1, 000 it is taxes divided by income, which equals 20