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Instruction: attach a picture or PDF of your answer to this question showing all calculations and graphs and labelling clearly. A worker has $5000 of
Instruction: attach a picture or PDF of your answer to this question showing all calculations and graphs and labelling clearly.
- A worker has $5000 of annual non-labor income. She has total available time of 80 hours per week, for 52*80 = 4160 hours per year. Her wage rate is $15 per hour and she currently chooses to allocate 2000 hours to work in a year.
- Illustrate her labor leisure diagram; using an Indifference Curve and budget line
- Using all the information above, label clearly all points on the graph: showing the optimal allocation of time and corresponding income
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