Reference no: EM131234877

In this question, you will use the bargaining model discussed in class to make predictions about how resources are divided within a family.a. The graph below has with wife's utility on the x-axis and husband's utility on the y-axis. Draw a utility production possibilities curve for the couple. Assume for simplicitythat there are no household public goods. Now draw in divorce threat points for thehusband (label it Th) and the wife (label it Tw). In this family, the wife does not work butshe receives health insurance through her husband's employer. She has very littleeducation and few years of experience and so if she were to work outside of the home,her employer most likely would not provide good affordable health insurance. Moreover,she has some serious health conditions implying that living without health insurance isnot an option. Start by assuming that Tw< Th. Darkly outline the possible combinations ofutilities for the husband and wife according to this model.