University of Arkansas ECON 101 PFP Chapter 4 Q&A Updated Summer 2023.

1. What does a household represent? A. An organizational structure that unites its occupants. B. A structure with a form that affects a business. C. The combined financial actions of a family. D. Logical decision making by a family. E. None of the above. 2. Which of the following best describes a household? A . An organization of multiple people who live in the same dwelling and share financial and other resources intended for the well-being of its members. B. A structure for one individual that lives in the same home. C. A organized financial relationship with a relative. D . An organization of one or more people who live in the same dwelling and share financial and other resources intended for the well-being of its members. E. None of the above. 3. How does a multiperson household lead to financial efficiencies? A. Reduction in income fluctuation. B. Specialization of task. C. Economies of scale. D. All of the above. E. Only b and c. 4. A household's sharing of fixed costs for shelter and other goods is an example of: A. Reduction in income fluctuation. B. Specialization of task. C. Economies of scale. D. All of the above. E. None of the ab