Question
A worker views leisure and income as good and has an opportunity to work at an hourly wage of $20 per hour. a.Illustrate the worker's
A worker views leisure and income as "good" and has an opportunity to work at an hourly wage of $20 per hour.
a.Illustrate the worker's opportunity sit in a given 24 hours period.
b.Suppose the worker is always willing to give up $15 of income for each hour of leisure. Do his preferences exhibit a diminishing marginal rate of substitution?How many hours per day will he choose to work?
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Macroeconomics
Authors: Charles I. Jones
1st Edition
978-0393926385, 0393926389
