Question#1

An individual works 8 hours a day in the labor market. How many units of a market good c can this individual purchase if they earn a wage of $45 per hour and the price of the market good is $2 per unit?On the single person PPF [non-married PPF}. if an individual only.I 1work's in the household, their total household production of g is {3} HT to?" {b} 7 {cl I] {d} None of these answers {e} Cannot be determined from this information On the joint FFF [married PPF} with equal productivities. if one individual onlyr 1works in the labor market and the other individual onlyr works in the household {full specialization]. their total household production of g is ______ {a} HT M {b} T {C} i} {d} None of these answers {e} Cannot be determined from this information A flattening PPF (the absolute value of the slope is becoming smaller) indicates that an hour in market production is becoming more productive relative to an hour in household production. O True O FalseA single person only needs one refrigerator for their kitchen. A married couple also only needs one refrigerator. The savings accrued by the individuals when they marry due to not needed tvvo refrigerators is an example of 0 cost sayings due to house hold economies of scale C) risk-sharing O a joint consumption complementary C) an intertemporal commitment device The gains to marriage: production specialization . A model of the production specialization. The model framework is based on traditional gender roles: . F and M are considering marriage. . They receive utility from market goods c and household-produced goods g. . They each distribute their time between the market and the household to create valuable goods and services (c, g). Each has a time constraint market + thousehold S T total available hours . In the labor market individuals have a wage rate w per hour. Thus, a person earnings are w . tm, and they can purchase- w.tm = c number of market goods P and services at fixed price p. . In the household, productivity is measured by 7, so a person produces a total 1 . th = g units of household output in the hoursThe gains to marriage: production specialization . A production possibilities frontier (PPF) graphically shows which production bundles are possible. . The slope of the PPF describes the tradeoff between the production of market and household goods and services. An individual only has a certain number of hours in a day, so they must decide how to allocate their time, and thus how much (c, g) they wish to produce. . A steeper, more negative, slope indicates that time in the labor market is relatively more productive than time in household production. . A flatter, less negative, slope indicates that time in household production is relatively more productive than time in the labor market