There have been suggestions that the "work ethic" in the U.S. has declined. The claim is that, as a result, people are choosing to work fewer hours (at a given wage rate and level of unearned income) than did individuals in the past. This can be indicated by changes in individuals' indifference curves. Show such a change in indifference curves on graph with the consumption good on the Y-axis and leisure on the X-axis. How does the slope of the indifference curve change at a given level of leisure? (It may be useful to draw a simple budget constraint to indicate the change in hours of work.)
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There have been suggestions that the "work ethic" in the U.S. has declined. The claim is that, as a result, people are choosing to work fewer hours (at a given wage rate and level of unearned income) than did individuals in the past. This can be indicated by changes in individuals' indifference curves. Show such a change in indifference curves on graph with the consumption good on the Y-axis and leisure on the X-axis. How does the slope of the indifference curve change at a given level of leisure? (It may be useful to draw a simple budget constraint to indicate the change in hours of work.)
Show such a change in indifference curves on graph with the consumption good on the Y-axis and leisure on the X-axis. How does the slope of the indifference curve change at a given level of leisure? (It may be useful to draw a simple budget constraint to indicate the change in hours of work.)
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