Household production is more likely to occur when
A) it requires many specialized resources
B) technology makes it more costly than market production
C) tax avoidance is undesirable
D) less control over the final product is desirable
E) the opportunity cost of household work is relatively small

Question

Quizplus · Accepted Answer

Household production is more likely to occur when the opportunity cost of household work is relatively small. This means that if the individual is not sacrificing much by doing household work rather than market production, they are more likely to choose to produce in the household. The other options are incorrect as household production is more likely to occur when it requires fewer specialized resources, when technology makes it less costly than market production, when tax avoidance is desirable, and when more control over the final product is desirable.

Household Production Is More Likely to Occur When