Deck 7: Houesholds

Question 1

Unitary models of household suggest that rising incomes may ________ gender gaps in consumption if households treat female consumption as a ________ normal good than male consumption.

A) increase; more strongly
B) reduce; more strongly
C) increase; same
D) reduce; same

Answer 1

B

Question 2

In the Wage labor households model,if the household has more time available,assuming food,non-food and home time are normal goods,which of the following statement is true?

A) Labor supply will decrease.
B) Labor supply will increase.
C) Food consumption will decrease.
D) None of the above.

Answer 2

A

Question 3

In the Wage labor households model,if there are simultaneous increases in food prices and wages,what will happen to the household's purchasing power?

A) increase
B) decrease
C) not change
D) ambiguous

Answer 3

D

Question 4

Unitary household models predict that households will put resources to __________ use.This means that households allocate land,non-labor income and other resources across uses in such a way that it is impossible to raise one member's well-being without reducing the well-being of another.?

A) equitable
B) efficient
C) fair
D) maximum

Question 5

Which of the following will always benefit the incapacitated households?

A) Increases in food prices.
B) increases in wages.
C) economic growth.
D) transfer of income from the rest of society.

Question 6

In the Farm households model,value of the marginal product of labor schedule is ________.

A) the farm household's supply for labor
B) the farm household's demand for labor
C) the marginal cost to the household of an additional day of his time.
D) upward sloping

Question 7

Subsistence farm households refer to households

A) consumer what they produce in their own farms.
B) do not need to work.
C) hire other people to work in their farms.
D) produce certain products and sell some of them in the market to but other products.

Question 8

Which of the following is true about non-farm households?

A) Non-farm households are less likely than food crop farmers to consume large quantities of the goods or services they produce.
B) Non-farm households are more likely than food crop farmers to consume large quantities of the goods or services they produce.
C) Non-farm households are more likely to be net sellers in output markets
D) Increasing in food prices tend to increase the non-farm households' purchasing power.

Question 9

In the Farm households model,Autarky labor quantity is determined when ________.

A) a household has no access to labor markets
B) the quantity of labor it employs on its own farm equals to the quantity of labor it supplies
C) the farm labor demand schedule and the household labor supply schedule intersect
D) all of the above

Question 10

Wage labor households maximize their utility by choosing ________.

A) consumption of food.
B) consumption of non-food.
C) enjoyment of home time.
D) All of the above.

Question 11

In the Farm households model,when transfer costs prevent farm households from participating in labor markets,what will happen with increases in crop prices?

A) VMPL will shift up
B) HLS will shift up
C) total farm output will always increase.
D) both a and b

Question 12

Which of the following is the endowment of the wage labor household?

A) Non-labor income.
B) Total time available.
C) Both a and b.
D) Labor income.

Question 13

In the Wage labor households model,if the household has a higher hourly wage,labor supply will ________.

A) increase
B) decrease
C) not change
D) ambiguous

Question 14

Which of the following is true about the wage labor households?

A) Wages are their only income.
B) Wage labor households all live in urban areas.
C) Wage labor households earn wages in high-skill work.
D) Wage labor households function simultaneously as both labor suppliers and consumers.

Question 15

The unitary households is referred so because

A) there is one person in the household.
B) every household is exactly the same.
C) households follow a unitary distribution.
D) it treats an entire household as if it were a unitary decision maker,maximizing a single utility function

Question 16

In the Farm households model,when transfer costs prevent farm households from participating in labor markets,what will happen to the supply of agricultural goods with increases in crop prices?

A) it will increase.
B) it will decrease.
C) it will stay the same.
D) it depends on how cheap the farmers have access to labor markets

Question 17

In the Farm households model,good's price ________ a household's purchasing power if it is a ________ of that good.

A) increase; net buyer
B) increase; net seller
C) decrease; net buyer
D) both b and c are correct.

Question 18

If a farm household's net marketed surplus of food is negative,it means ________.

A) the household sells food in the market
B) the household buy food in the market
C) the household is losing money in the market
D) this household is a subsistence farm household

Question 19

If a farm household's net market labor supply is positive,it means ________.

A) some family labor is hired out through labor markets
B) non-family labor is hired in through labor markets
C) all of the family labor is working for other farms
D) this household is a subsistence farm household

Question 20

If the price of wheat rises by 10 percent and the ratio of a household's net marketed surplus in wheat to total income is m,then its real purchasing power rises by approximately how much?

A) 10m percent
B) 5m percent
C) 2m percent
D) m percent

Question 21

An _________ in the price of food (holding income and other prices constant)_______ a wage labor household's well-being by reducing its purchasing power or real income.

A) Increase; increases
B) Decrease; decreases
C) Increase; reduces
D) Decrease; does not change

Question 22

Nash sets out axioms describing characteristics that we might reasonably expect to see in bargaining outcomes,when the parties to the bargain are rational.He supposes these axioms are fulfilled and examines their implications.More specifically,Nash suggests that a cooperative bargaining outcome should satisfy what five axioms?

Question 23

How can rising incomes reduce gender gaps in consumption?

Question 24

_______________ theories thus assume that household decisions are reached through a bargaining process,in which each spouse seeks to get his or her way in allocating household resources and threatens to break up the household (causing the benefits of cooperation to disappear)if household allocations are not satisfactory?

A) Collective bargaining
B) Unitary
C) Voting
D) Cooperative bargaining

Question 25

The variables that determine a household's budget line are
E) Its preferences and income
F) Its preferences and prices
G) Prices and income
H) None of the above

Question 26

In Nash bargaining models,any change in circumstance that increases the wife's fall-back utility shifts the bargaining outcome in the favor of______________.Having a stronger fallback position this translates into _____________ bargaining power.

A) The wife; greater
B) The Husband; greater
C) The Wife; less
D) The husband; less