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Economics Homework Six - Model (view source)

Revision as of 23:49, October 25, 2009

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14.  The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.
 
14.  The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.
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:I think this is possible, but not necessarily true. Marriage alone does not actually guarantee anything. Marriage would probably lead to a greatly efficient division of labor when the spouses fill the traditional roles: husband primarily making money, and wife helping to educate the kids and take care of the house. However if there is animosity between the spouses over these roles (this might have the same effect as transaction costs!) the efficiency will be impaired. But if the spouses are agreed to these roles (absence of transaction costs) then the division of labor will be extremely efficient. (Addison)
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