Unformatted text preview: Workers, when deciding whether or not they want to work, and how much they want to work, are faced with a choice between two possibilities: leisure and consumption. (Economists assume that leisure can be treated as a normal good: more is better) There is a tradeoff, however, between leisure and consumption). If a person decides that they want leisure, then they will work less (or not at all), but this means that they won't be able to buy as many things. If they decide that they want to consume, then they will work more (or all of the time), but this means that they won't have as much free time to themselves. Their preferences for leisure (free time) and all other goods (consumption), combined with the current market wage, will determine what combination of leisure and all other goods they will choose, much in the same way that an individual's indifference...
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- Fall '11
- one day, 24 hours, AOG, one hour, 24W