Sunday 15 February 2015

Define household production and housework and explain the difference between them. In each of the cases listed below, state if the activity...

Household production involves the production of goods and services by members of a household for their own use and consumption. To produce these goods and services, they use their own capital and are not paid for their labor. In the process of household production, people use intermediate purchased commodities (such as groceries or other products) and turn them into final consumption commodities(final commodities are those they can use or consume such as meals or...

Household production involves the production of goods and services by members of a household for their own use and consumption. To produce these goods and services, they use their own capital and are not paid for their labor. In the process of household production, people use intermediate purchased commodities (such as groceries or other products) and turn them into final consumption commodities (final commodities are those they can use or consume such as meals or clean clothes). Not all housework, meaning work done around the house, fits this definition, as some housework does not produce final consumption commodities. 


In the examples above, consider whether the activity described is turning intermediate purchased commodities into final consumption commodities. For example, cooking a meal of hamburgers involves turning an intermediate purchased commodity (hamburgers bought raw at a grocery store) into a final consumption commodity (a meal that the family can eat), so this would qualify as both household production and housework. Consider whether the other examples fit this definition as you go through them. Again, to fit this definition, the production must end with a final consumption commodity. Work done outside the house would not, however, be considered household production. 

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