Question 1
In making labor supply decisions, households weigh
◦ the market wage against the value of market produced goods.
◦ the market wage against the value of their marginal product of labor.
◦ the market wage against the value of leisure and time spent in unpaid household production.
◦ child care costs.
Question 2
Marginal cost is a good measure of
◦ the social value of a marginal unit of a good.
◦ the least costly way to produce all units of a good.
◦ what society gives up by using resources to produce more of a good or service.
◦ what society gains by using resources to produce more of a good or service.