ECON 262 Lecture Notes - Lecture 1: Comparative Advantage, Opportunity Cost, Canada 2006 Census
2 Feb 2018
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Makes gains from complete specialization much smaller. Innate u maybe negative or disutility increases the more you do it: make some argument about leisure, especially for woman who works, full-time and is responsible for majority of home production during years where have children. Mu: life cycle change simple model ignores fact that comparative advantage, value of home production peaks during child-rearing years and changes over lifetime (cooking = better cook) If divorce and male specialized in work production may have fewer home production skills but can use market income to purchase them: example: hire people, buy food prepared. Relates to high poverty rate among lone-parent female headed households. Complete specialization in tradition arrangement means male controls household resources and he may skew spending and adopt lifestyle that accords with his preference rather than partner"s. If preferences are similar, then not controversial because tend to choose some goods and services. If preferences differ significantly, how decide? (go to models)
