Identify a Correct Statement About Household Production

question 44

Multiple Choice

Identify a correct statement about household production.

• A) Household production is more likely to occur when it requires many specialized resources.
• B) Household production is more likely to occur when technology makes it more costly than market production.
• C) Household production is more likely to occur when tax avoidance is undesirable.
• D) Household production is more likely to occur when less control over the final product is desirable.
• E) Household production is more likely to occur when the opportunity cost of household work is relatively small.

---

Definitions:

Equity

Fairness or justice in the way people are treated or how resources are distributed.

Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste or expense, often associated with productivity and economic contexts.

Welfare Economics

The branch of economics that focuses on the optimal allocation of resources and goods and how the allocation affects social welfare.

Equitable Outcome

An equitable outcome is a situation or result in economic transactions or distributions that is considered fair or just among all parties involved.