In a particular family,both spouse A and spouse B could earn $20 per hour in market work.However,spouse A has a comparative advantage in the production of home-produced goods.Becker's model of time allocation predicts that:
A)spouse B will be better able to substitute time for goods in the production of commodities
B)spouse A and spouse B will divide market work and home production equally
C)spouse A will tend to specialize in market work; spouse B in home production
D)spouse A will tend to specialize in home production; spouse B in market work

Question

Quizplus · Accepted Answer

According to Becker's model of time allocation, individuals tend to specialize in the activity in which they have a comparative advantage. In this case, spouse A has a comparative advantage in home production, so it is likely that they will specialize in that activity while spouse B specializes in market work. Therefore, the best choice is D.

In a Particular Family,both Spouse a and Spouse B Could