Sexton 7e Solutions Manual for Problems Chapter 1: 1. In most countries the birth rate has fallen as incomes and the economic opportunities for women have increased. Use economics to explain this pattern. Answer: One of the most important resources used raising children has historically been the mother’s time. As opportunities for women to hold jobs, start businesses, and participate in political life increase, the cost of using women’s time for raising children increases. As the cost of the mother’s time rises, fewer children are born.
2. Write your own definition of economics. What are the main elements of the definition? Answer: The definition must recognize the central parts of the economist’s point of view: resources are scarce; scarcity forces us to make choices; and the cost of any choice is the highest valued of the lost opportunities.
3. Are the following topics ones that would be covered in microeconomics or macroeconomics? a. the effects of an increase in the supply of lumber on the home-building industry. b. changes in the national unemployment rate. c. changes in the inflation rate. d. changes in the country’s economic growth rate. e. the price of concert tickets. Answers: a. microeconomics; b. macroeconomics; c. macroeconomics; d. macroeconomics; e. microeconomics.