Define the Term Drift

question 14

Essay

Define the term drift.

Understand the impact of real wage changes on the opportunity cost of household work.

Recognize the factors contributing to the increased labor force participation of married women in the U.S.

Identify the resource that comprises the largest share of household income in the U.S.

Comprehend the concept of utility maximization by households.

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Definitions:

Differential Basis

A method of calculating or analyzing the difference in costs or revenues between two alternative actions.

Sunk Cost

A cost that cannot be changed by any present or future decision.

Book Value

The difference between the cost of a depreciable asset and its related accumulated depreciation.

Opportunity Cost

The potential benefit that may be obtained from following an alternative course of action.