An accountant receives a substantial raise, increasing her hourly wage. After the raise, she decides to maintain her exact same work schedule, neither increasing nor decreasing her hours. This outcome implies that the effect of her increased purchasing power was exactly offset by the effect of the higher opportunity cost of her free time.
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Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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An accountant receives a substantial raise, increasing her hourly wage. After the raise, she decides to maintain her exact same work schedule, neither increasing nor decreasing her hours. This outcome implies that the effect of her increased purchasing power was exactly offset by the effect of the higher opportunity cost of her free time.
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