Explain how comparing two-earner and one-earner households can be ...

[oliviahorn72]

Explain how comparing two-earner and one-earner households can be used to illustrate the problem of using money income as a measure of well-being.
 
  What will be an ideal response?

Question 2

Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. Tomaso faces ________ opportunity costs in the production of pizzas and calzones.
 
  A) decreasing B) constant C) increasing D) negative

[rachel]

Answer to Question 1

Even though a two-earner family is likely to have a higher income than a one-earner family, time is much scarcer for a two-earner family. The two-earner family may have to spend money to purchase goods and services that a one-earner family could produce at home, for example, child care.

Answer to Question 2

B