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G. Stirling
Department of Economics
Economics 2155 - 001
Sample Mid-term #1
Figure 1
17. The theory of household productions assumes that the household derives utility from
a. income
b. time spent in home production
c. commodities produced by the household
d. market purchased goods services
18. In the theory of household production, the household must
a. determine what is to be produce.
b. determine how to go about produce the commodities they care about
c. determine the combinations of leisure and income that produce a certain level of utility
d. both (a) and (b).
19. In a one period model of household production the effects of a wage increase cause
a. the full price of time intensive home produced commodities to increase more than the full
price of market goods intensive home produced commodities.
b. the full price of time intensive home produced commodities to decrease less than the full
price of market goods intensive home produced commodities.
c. the full price of market goods intensive home produced commodities to increase more
than the full price of time intensive home produced commodities.
d. the full price of time intensive home produced commodities to increase and the full
price of market goods intensive home produced commodities to decrease.
a
c
b
b
c
a
a
b
d
a
b
b
a
c
d
c
c
d
a
a
c
b
a
d
b
b
b
d
c
c
d
b
c
c
a
c
c
b
a
c