hours a week, who will have greater H∗?Why?

b If both individuals work enough hours so as to earn exactly $50,000 per year, who will have greater H∗?Why?

c Draw a set of axes labeled TW and TZ that resemble Figure 3.8. Draw a line labeled A that shows individual A’s time constraint during a given period (say, one month), and draw another time constraint for individual B. Explain why and how they differ due to choices in previous periods.

d On this same set of axes, draw representative indifference curves for both individual A and individual B, including ones that lie tangent to their respective time constraints. Based on the way you drew your curves, does individual A earn less than twice as much or more than twice as much as individual B?

e Explain briefly why your answer to Exercise 13

(a) may change if you found out that individual A had to spend ten times as many hours on homework during her schooling years as individual B did.

f Explain why it is optimal for individual B to invest less in health when she is already less healthy than A.Why does she not invest more to “catch up”?