Question

While specialization allows firms to produce many goods and services at lower production and transaction costs than individuals can, most households still produce some goods and services for themselves. Which of the following provides a reason for this?

1.The production of some goods and services doesn't require special skills or resources.
2.Households can minimize spillover benefits by producing some goods and services for themselves.
3.Technological advances such as computers, crock pots, and bread makers have increased households' efficiency in producing many goods and services.
4.Household production is more costly in terms of taxation.

Answer 1

Technological advances such as computers, crock pots, and bread makers have increased household's efficiency in producing many goods.

Step-by-step explanation:

With the advances in technology, almost every process has become less time-consuming and more convenient. Most people go for one one-time solution for getting the job done. For example, a lot of households have invested in specialized machinery such as bread makers, juicers, etc so they don't have to outsource simplest of things. Moreover, this is less costly as getting things done from elsewhere involves taxes.