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Econ stuff test one

by: Benjamin Collett

Econ stuff test one Econ 110

Benjamin Collett

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Testing study
Econ Principles and Problems (ECON 110)
Class Notes
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This 2 page Class Notes was uploaded by Benjamin Collett on Wednesday September 21, 2016. The Class Notes belongs to Econ 110 at Brigham Young University taught by Kearl in Fall 2016. Since its upload, it has received 4 views. For similar materials see Econ Principles and Problems (ECON 110) in Economics at Brigham Young University.


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Date Created: 09/21/16
“All in the Family” argues that with more women in the workforce, firms will see higher productivity and lower costs’. This is true. We know that more workers and more resources equal a greater ability to produce or increase economic output. These resources and technologies, specifically labor and human capital, determine the aggregate production possibility frontier. The PPF shifts outward, producing more rather than less. The other argument is that incentives or “safety nets” by the United States government are far behind other countries incentives for families. Incentives such as paid family leave when a child is born, greater flexibility in working time and greater support for the education of pre-school children. Specialization in roles occurred in the past, as women would stay at home raising kids while the man worked. Of course, this is also under centralized decision making of each family; to minimize the opportunity cost between each couple is different for each. Note the median female wage is 80% of that of men pushes opportunity cost to be greater if the man stays home based off the numbers. Women adding to the labor resource of the economy, also allow jobs to open. Nannies and house cleaners increase more economic output. The cost to companies in replacing a worker after one has left for any reason is estimated to 15%-20% of annual pay. Instead provide family incentives that keep women with the company, easing their burden to women and saving money for the firm thereby boosting productivity overall.


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