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.

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Definitions:

Bureaucratic Inefficiency

The delay and ineffectiveness often experienced within organizations, especially large ones, due to complex procedures and red tape.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large as a result of an economic activity.

Logrolling

The practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.

Paradox Of Voting

A situation where individual rationality in voting may lead to outcomes that are not collectively optimal, such as the failure to elect the most preferred candidate due to vote splitting.