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If a woman is paid per product in home-based work but bears raw material and electricity costs herself, what is the problem?

Answer and explanation

Correct answer: Hidden costs can reduce real income

A is correct. After deducting expenses such as raw materials and electricity from the amount she receives, her real or net income may be low. Payment per product shows gross earnings, not necessarily profit. Option B is incorrect because higher costs can reduce profit. Exam tip: analyse such cases as net income = payment received − work-related expenses.

Related tags

Home-Based WorkHidden CostsNet IncomeWomen WorkersGender And WorkGender Issues Related To WorkWorkLivelihood And CareerWork Livelihood And Career

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