A Main Motivating Factor for the Increase in Dual-Earner Couples

question 119

Multiple Choice

A main motivating factor for the increase in dual-earner couples is that:

• A)women's incomes are now more similar to men's, compared to their incomes in the past.
• B)child care is more available and more affordable.
• C)couples are more likely to remain unmarried, and thus need greater independent financial security.
• D)couples tend to have larger families than they did in the past.

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Definitions:

u(X,Y)

A utility function representing the satisfaction a consumer gets from consuming quantities of goods X and Y.

MRS

Marginal Rate of Substitution, an economic concept that describes the rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility or satisfaction.

Market Basket

A selected set of goods and services used to track changes in prices and measure inflation over time, reflecting the typical consumer's spending.

Marginal Utility

The increased happiness or advantage gained from the consumption of an additional unit of a good or service.