Question

1. In this question, you will examine the impacts of changes in productivity in the labor market on
decisions made within families. Use the specialization and exchange model to guide you through
the problem (7 points total)
a. Let's start by sketching a joint combined production possibility frontier for a typical
couple. Assume that the typical male has absolute advantage in the labor market and that
the typical female has absolute advantage in home production. Their individual production
possibilities frontiers are shown in the graph below (his in blue and labeled M and hers in
orange and labeled F). Draw in their joint production possibilities frontier --how much they
can produce together if they specialize. (1 point)
Market
goods
D
M
C с
F
Home goods
A
B
b.
Now imagine that wages in traditionally male occupations decrease but that wages in
traditionally female occupations stay exactly the same. You can assume that husbands
continue to earn more in the labor market than their wives, but the difference is no longer
as stark. Also, assume that there is no change in home production productivity for both
husbands and wives. In the graph above,
(1) show using dotted lines (ideally in blue and orange) how individual production
possibilities frontiers may have changed (1 point)
draw in the new joint production possibilities frontier also using dotted lines. (2
points)
c.
How would these changes affect the number of home goods consumed by the typical
family?
1. The amount of home goods would (Circle one): Increase/Decrease/No Impact.
Explain your answer in words. (2 points)
ii. Add some indifference curves to the graph above to justify your answer. (1 point)​

Answer 1

Explanation:

पापा मंत्र विद्या को सुनहरा रास्ता