A Feasible but Suboptimal Choice (Point D)
A point inside the feasible set but not on the budget constraint, such as Point D (18 hours of free time, €70 of consumption), represents a feasible but suboptimal choice. While this combination is affordable, it is inefficient because the individual would be consuming less than their earnings allow. For a rational person who only values consumption and free time, this choice means giving up something that is freely available. They could achieve a better outcome by increasing consumption without sacrificing free time, or vice versa, by moving to a point on the budget constraint itself. Despite its suboptimality, such a point remains a valid option within the feasible set.
0
1
Tags
Science
Economy
CORE Econ
Social Science
Empirical Science
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
Related
A Feasible but Suboptimal Choice (Point D)
Suboptimality of Choices Below the Budget Constraint
Activity: Analyzing the Effect of a Wage Increase on Karim's Budget Constraint
Figure E3.2: Marina’s Feasible Frontier
Calculating the Slope of the Budget Constraint
Plotting a Budget Constraint from Tabulated Data
The Budget Constraint Equation for Figure 3.6
Budget Constraint Graph (Fig. 3.6) vs. Income Function Graph (Fig. 3.3)
Infeasible Choices Above the Budget Constraint
Learn After
An individual has 24 hours per day and can earn €20 per hour from working. They choose to have 14 hours of free time and spend €150. Which statement best analyzes this decision?
Evaluating a Work-Leisure Decision
Analyzing an Economic Choice
An individual has 24 hours available each day and earns a wage of $25 per hour. They decide to have 16 hours of free time and consume $180. This combination of free time and consumption is considered feasible but suboptimal.
An individual has 24 hours available each day and earns a wage of $25 per hour. They decide to have 16 hours of free time and consume $180. This combination of free time and consumption is considered feasible but suboptimal.
An individual has 24 hours per day to allocate between free time and work. They can earn a wage of $15 per hour. Which of the following choices represents a combination of free time and consumption that is possible to achieve but does not fully utilize the individual's earning potential for the hours worked?
The Rationale for Economic Efficiency
An individual has 24 hours per day and earns a wage of $20 per hour. Match each of the following consumption and free time choices to the correct economic description.
Evaluating an Economic Decision
An individual has 24 hours per day and earns a wage of $30 per hour. If they choose to have 10 hours of free time and consume $300, this choice is considered feasible but ____ because they could increase their consumption to $420 without working more hours.