a. Draw a graph of the household production model, for a household shared by a man (m)
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a. Draw a graph of the household production model, for a household shared by a man (m) and a woman (f). Assume that the man's wages are higher (wm > w f) and that the woman is more productive in the household (hm < h f). Be sure to show both their individual and joint production possibilities frontiers (PPFs), and make sure you label all axes, intercepts, and lines. PLEASE SHOW THE GRAPH!!!!!!!!
b. Now suppose the gender gap in wages closes completely, so that wm = w f . Draw a second graph that shows this situation. Will there still be gains from "trade" in this household?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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