Despite Specialization and Comparative Advantage,household Production Still Exists Because for Some

question 73

Multiple Choice

Despite specialization and comparative advantage,household production still exists because for some households:

• A)the opportunity cost of production at home is greater than the cost of purchasing the good in the market.
• B)production at home is less costly than purchasing the good in the market.
• C)the value of home production exceeds the sunk cost of home production.
• D)the value of home production is ignored.
• E)the expenditure on food and clothing represents a small portion of their total budget.

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Definitions:

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Stand-alone Risk

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