Figure 3.21 - A Household's Feasible Frontier, Indifference Curves, and Optimal Choice
Figure 3.21 displays a graph of household choices, with total non-working hours, ranging from 14 to 34, on the horizontal axis and total consumption in dollars on the vertical axis. Coordinates are presented in the format (non-working hours, consumption). The figure includes three parallel, convex, and downward-sloping indifference curves that represent household preferences. A straight-line feasible frontier connects the two extreme points of (14, 600) and N (34, 0). The optimal choice for the household is shown at point B (22, 360), which is the location where this feasible frontier is tangent to the middle indifference curve.
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CORE Econ
Introduction to Microeconomics Course
Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Related
Calculating Household Paid Work Hours (Ana and Luis Model)
Figure 3.21 - A Household's Feasible Frontier, Indifference Curves, and Optimal Choice
Principles of Equal Sharing in the Ana and Luis Model
Consider a household model for a couple who collectively have 48 hours per day to allocate. The model assumes that 14 of these hours must be spent on essential, unpaid domestic labor. Given this constraint, what is the total number of hours remaining for the couple to divide between paid employment and all other non-work activities?
A household model specifies that a couple has a combined 48 hours per day, of which 14 hours must be dedicated to unpaid domestic work. The couple agrees to share the total combined work time (paid employment plus unpaid domestic work) equally between them. If one partner works 10 hours in paid employment, how many hours of unpaid domestic work must that same partner perform if the other partner works 6 hours in paid employment?
Feasibility of a Household's Time Allocation
Implications of a Household Work-Sharing Agreement
Implications of a Household Work-Sharing Agreement
Consider a household with two partners who have a total of 48 hours per day to allocate. They must complete 14 hours of unpaid domestic work daily. Initially, both partners earn $30 per hour and agree to share their total combined work time (paid employment plus unpaid domestic work) equally. If one partner's wage increases to $50 per hour while the other's remains at $30, how should they adjust their individual tasks to maximize the household's total income for any given amount of total work time?
Rationale for Model Assumptions
Evaluating the Realism of a Household Economic Model
Motivation for Non-Work Time in the Ana and Luis Model
Analyzing a Change in a Household's Work-Sharing Agreement
A household model is based on two partners who must complete 14 hours of unpaid domestic work daily. They agree to share their total combined work time (paid employment plus unpaid domestic work) equally. If one partner takes on a greater share of the unpaid domestic work, what must be true about the hours they spend in paid employment compared to their partner, in order to maintain the equal total work time agreement?
Learn After
Modeling Household Preferences via Individual Preferences
Point N (34 Non-Working Hours, $0 Consumption) in Figure 3.21
The Household's Feasible Frontier (Figure 3.21)
Paid Work Hours vs. Non-Working Time in Figure 3.21
The Household's Preferred Choice
Goods Valued in the Household Choice Model (Figure 3.21)
Graphical Representation of Household Preferences in Figure 3.21
The Household's Optimal Choice at Point B (Figure 3.21)