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Model of Constrained Choice (Decision Making Under Scarcity)
Feasible Set
A feasible set encompasses all possible combinations of goods or outcomes that a person can choose given their constraints, such as economic or physical limitations. It is essentially a collection of all feasible options. In a graphical representation like Karim's, the feasible set is often shown as a shaded area, and any point within this area represents a viable, though not necessarily optimal, choice.
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CORE Econ
Economics
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Economy
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
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Which of the following best describes the model of decision making under scarcity?
How does the model of decision making under scarcity explain the differences in work hours between countries?
Which of the following scenarios best illustrates the application of the model of decision making under scarcity?
Which of the following factors is most likely to influence an individual's decision on how much time to spend working versus enjoying leisure, according to the model of decision making under scarcity?
Role of Wages in Work-Leisure Decisions
Role of Individual Preferences and Circumstances in Work-Leisure Decisions
Constraint on Daily Work Hours in Economic Models
Distinction Between Preferred and Feasible Choices
Budget Constraint
Feasible Set
Applying the Individual Choice Model to Explain Group Behavior
'Market Work' and 'Free Time' in the Work-Leisure Model
Individual Decision-Making Models (Non-Strategic Interactions)
Influence of Institutions on the Distribution, Fairness, and Efficiency of Economic Outcomes
Solving Constrained Choice Problems using Indifference Curves and a Feasible Set
Analyzing an Optimal Choice
Analyzing a Change in Constraints
Critiquing a Suboptimal Choice
In a model of choice under scarcity, an individual's options are constrained by a feasible frontier, and their preferences are shown by indifference curves. Consider a point 'A' that lies on the highest possible indifference curve but is outside the feasible frontier. Consider another point 'B' that lies on the feasible frontier where it is tangent to an indifference curve. Finally, consider a point 'C' that lies inside the feasible frontier, not on the boundary. Which of the following statements correctly analyzes these options to identify the optimal choice?
In a constrained choice model, an individual's optimal decision is represented by any point where one of their indifference curves intersects with the boundary of their feasible set.
Evaluating the Realism of the Constrained Choice Model
Rational Ignorance
Applying the Constrained Choice Model to Labor Supply
Overview of the Work-Leisure Choice Model
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Feasible Frontier