This chapter deals with labour supply, which is an important application of consumer theory. Economists view labour supply as a choice between consumption and leisure. While consumption is limited by the budget, leisure is limited by time: there are only 24 h in a day and seven days in a week, which sets the framework for the choice between leisure and working hours. The exercises in this chapter will help you become more familiar with both the decision to work and the choice of how much to work under different assumptions about preferences, wages, and non-labour income.

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Consumers at Work

  • Kjetil Bjorvatn

摘要

This chapter deals with labour supply, which is an important application of consumer theory. Economists view labour supply as a choice between consumption and leisure. While consumption is limited by the budget, leisure is limited by time: there are only 24 h in a day and seven days in a week, which sets the framework for the choice between leisure and working hours. The exercises in this chapter will help you become more familiar with both the decision to work and the choice of how much to work under different assumptions about preferences, wages, and non-labour income.