Application 1

Application 1 - 4. Do you think the marginal utility of...

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ECONOMICS 201 SPRING 2012 APPLICATION 1 Please type your responses. We will have a class discussion on Monday February 13, 2012. Fertility An important topic in the economics of the family is fertility, the choice of how many children to have. Let’s consider three goods: (a) the number of children through sexual reproduction, (b) the number of children through adoption, and (c) the number of children through reproductive technology (e.g. medical techniques like artificial insemination to induce conception). 1. Who are the relevant “consumers” (decision-makers) in this context? 2. What does the “price” of having and raising children include? 3. Are the three goods perfect substitutes? Why?
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Unformatted text preview: 4. Do you think the marginal utility of children decreases or increases as the number of children rises? Why? 5. Generally, are children normal or inferior goods? Discuss. 6. What happens to the demand for children as college tuition rises? Why? 7. Specifically, what happens to the demand for adopted children if the government introduces a tax subsidy per child adopted? 8. Lets consider couples who are currently infertile. What happens to the demand for adopted children when the price of fertility technology decreases? Why? 9. For couples who are not currently infertile, how might the price of fertility technology affect the demand for children through sexual reproduction? Explain....
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This note was uploaded on 02/23/2012 for the course ECON 201 taught by Professor Ninkovic during the Spring '08 term at Emory.

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