Despite Specialization and Comparative Advantage, Household Production Still Exists Because

question 72

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)food and clothing expenditures represent a small portion of their total budget

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Definitions:

Efficiency

The ability to accomplish a task or a job with a minimum expenditure of time, effort, and resources.

Proposed Program Section

A section of a plan or proposal that outlines the details, objectives, and activities of a program that is being suggested.

Scholarship

Financial support awarded to a student on the basis of academic or other achievement to help fund their education.

Justification

The reasoning behind a decision or action, often provided to explain why it is appropriate or required.