These questions were based on an article that profiled women who were part of a book club, had high levels of education (from elite schools), married men with high earnings, and were on track for high?paying careers. They all decided to withdraw from the paid labor market after having children. These questions seek to discuss if and how the labor supply model would predict their choices to exit the labor force and/or to reduce their work hours. (The Opt-out Revolution from NYT by Lisa Belkin)

\f6. If we think of membership in a book club as a sign that the person has a very high value for leisure activities that take up time and don't cost a lot of money: does our model predict that (all else equal) people of the type that would want to join a book club would work more or less than other people? a. Illustrate your answer using marginal utility figures that show cases with high and low "book club" preferences that produce different participation decisions (W>0 versus W=0). b. Illustrate using marginal utility figures that show cases with high and low "book club" preferences that produce different work hours (both for W>0). [These figures do not have to be exact, but you should show that they satisfy the conditions discussed in class for marginal utilities and the time constraint.] c. Provide intuition for why the marginal utility curve (or curves) will change in the way you showed.Two graphs showing 3 MU curves MUNW* = MU* = MUL* Marginal Marginal value of non-work time utility This figure shows all time (T) being used for non-work - either leisure (L) or home MUH production (H) The MUNw* is the marginal utility from the MUNW* last hour spent not working (either on L or H); It is the opportunity cost of working for the first hour of working MUL Use this for the participation decision L=0; H=T L* = T- H* L=T; H=0 Leisure (L to R) / Home production (R to L)