Karim's Work-Leisure Choice (Figure 3.3)

The Budget Constraint as an Equation and Inequality

Household Budget Constraint (Ana and Luis Model)

Calculating Average Wage from Annual Income and Hours Worked

Calculating Monthly Consumption from Labor Income

An individual currently earns $25 per hour and works 40 hours per week. They are considering two distinct options to increase their weekly income:

Option A: Secure a 10% raise in their hourly wage. Option B: Work 10% more hours per week at their current wage.

Assuming all income is available for consumption, which statement accurately compares the effect of these two options on the individual's weekly consumption capacity?

Calculating Income After a Raise

Comparing Job Offers to Meet a Savings Goal

If an individual's hourly wage is increased by 20% and their weekly hours worked are reduced by 20%, their total weekly income from labor will remain unchanged.

An individual is considering four different part-time job scenarios. Match each job scenario (hourly wage and weekly hours) to the correct total weekly income it would generate.

Evaluating Strategies for Income Growth

Analyzing Job Offer Trade-offs

Two workers, Person A and Person B, have different work arrangements. Person A earns an hourly wage that is double the hourly wage of Person B. However, Person A works exactly half the number of hours per week as Person B. Based on this information, how does Person A's total weekly income from labor compare to Person B's?

Devising a Work Plan for a Financial Goal