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2. Consider a household composed of 2 individuals, Chris and Jamie. Both people can work outside the home to produce market goods, or inside the home to produce home goods. The household consumes both types of goods in order to produce household "happiness" or utility. a. Suppose Chris can produce 200 units of home goods or 50 units of market goods in an 8 hour day. Jamie can produce 300 units of home goods or 100 units of market goods in an 8 hour day. Draw PPFs for both individuals separately, and then construct the joint HH PPF. How would you define absolute and comparative advantage here? What is the opportunity cost of market work for each individual? CAREFULLY EXPLAIN YOUR DIAGRAMS. b. Mark the specialization solution A in your joint HH PPF. Suppose that Chris and Jamie would maximize utility by both at this specialization point, but their income is so low that they both must work full time in the market to pay their rent and other bills. Use INDIFFERENCE CURVES to SHOW their utility maximizing choice, as well as the choice they have to make given the constraint that they must both work in the market full time. EXPLAIN how these choices differ. c. Black, et. al., state on page 54: "Our work reinforces a central theme of Becker's: that family life and economic life are interwoven. Gay men and lesbian women face constraints that differ from heterosexual individuals- constraints that affect decisions at the family level and therefore spill over into other aspects of economic life." EXPLAIN 4 DECISIONS at the family level that are different for gay and lesbian couples as compared to heterosexual partners. If Chris and Jamie are a lesbian couple, how might these DIFFERENT TYPES OF DECISIONS be reflected in the joint household model that you drew in part a