Informal work at home (e.g., preparing meals, taking care of
children) is not counted as part of GDP. Such work also does not
constitute employment in labor-market statistics. With these
observations in mind, consider two economies, each with 100
people, divided into 25 households each composed of four people. In
eachhousehold, one person stays at home and prepares the food,
two people work in the nonfood sector, and one person is
unemployed. Assume that the workers outside food preparation
produce...