ECON MACRO 5th Edition by William McEachern

Exercise 4

HOUSEHOLD PRODUCTION Many households supplement their food budget by cultivating small vegetable gardens. Explain how each of the following might influence this kind of household production:
a. Both husband and wife are professionals who earn high salaries.
b. The household is located in a city rather than in a rural area.
c. The household is located in a region with a high sales tax on food.
d. The household is located in a region with a high property tax rate.