Question

1. Which of the following is true with respect to the Demand curve for prostitution?

1. A steeper, more inelastic curve implies there are less good substitutes
2. A steeper, more elastic curve implies there are more good substitutes
3. A steeper, more inelastic curve implies there are more good complements
4. A steeper, more elastic curve implies there are less good complements

2. In post WW2 Yokohama prefecture in Japan, if the allies had implemented the recommended price controls in the brothels then which of the following would have resulted?

1. There would have been a shortage of brothel-workers causing prices for streetwalkers to skyrocket
2. There would have been a shortage of brothel-workers and the supply of streetwalkers would have jumped as a result of the spillover
3. Streetwalkers would have lowered their prices to compete which would have led to a shortage of streetwalkers
4. The transmission of STI’s would have decreases as more soldiers would have substituted away from streetwalkers in favour of the more competitively-priced brothel-workers

3. Which of the following is not an element of Gary Becker’s model of New Home Economics from the 1960-1970’s?

1. Specialization according to the principles of absolute advantage
2. Division of labour according to relative skill and ability
3. A union based on practicality and compromise
4. A market for marriage based on utility maximization

4. The Male/Female ratio in China has drastically increased over the last several decades. Increasing globalization of the Chinese (heterosexual) marriage market would be expected to

1. increase the payments by males to females
2. increase the size of homes of male suitors
3. increase the relative power of males in the marriage contract
4. increase the level of quality control by females interested in marriage

Answer 1

1. Option B

If income of consumer will increase he will shift to high profile prostitute.Also if price of prostitute increases then consumer will shift to some low priced substitute prostitute.Demand for a good is said to be “elastic” if a small change in price causes people to demand a lot more or a lot less of the good.A good with more close substitutes will likely have a higher elasticity.The higher the percentage of a consumer’s income used to pay for the product, the higher the elasticity tends to be

2.Option D

The immediate effects of the end of authorized brothel prostitution was the sudden unemployment of thousands of women, many of whom went on to become "panpan" street prostitutes. The dispersal of prostitution made it harder to control STDs and also caused an increase in sexual violence.

3.Option A

Becker assumed that women have a comparative advantage in domestic work, which means they are able to produce more within the household, while men have a comparative advantage in market work, which means that they are able to earn more compared with women. According to such viewpoint, when women specialize in household production and men specialize in market production, and they share what they produce, both men and women maximize their utilities.

4.Option D

The New Marriage Law declared the abolition of the feudal marriage system, which included arranged and forced marriage, male superiority, and the disregard for the interests of children.Rural women have also gained more autonomy, including the freedom to voice their opinions and desires.Wives in the wealthy countryside have demanded construction of mansions for neolocal residences.