Household Budget Constraint (Ana and Luis Model)

The Household's Preferred Choice at Point B (22 Non-Working Hours, $360 Consumption)

A household consists of two individuals who have a combined total of 48 hours available per day. They must spend a fixed 14 hours per day on essential domestic work for which they are not paid. If they choose to spend 18 hours per day on non-working activities (leisure), how many hours are left for paid work?

A household of two has a combined 48 hours available per day, of which 14 hours must be spent on mandatory unpaid domestic work. Given these constraints, it is possible for the household to simultaneously allocate 22 hours to paid work and 13 hours to non-working (leisure) activities.

Household Time Allocation Adjustment

Calculating Maximum Paid Work Hours

A two-person household has a total of 48 hours available per day, with a mandatory 14 hours spent on unpaid domestic tasks. They are currently allocating 10 hours per day to paid work. If they wish to increase their paid work to 15 hours per day, what corresponding change must they make to their daily non-working (leisure) time?

A two-person household has 48 hours available per day. They are required to spend 14 hours on unpaid domestic work. Match each possible amount of daily non-working (leisure) time with the corresponding amount of time available for paid work.

Evaluating a Policy Change on Household Time Allocation

In a two-person household model where 48 total hours per day are available and 14 of those hours are fixed for mandatory, unpaid domestic work, every additional hour spent on non-working (leisure) activities necessarily reduces the time available for paid work by ____ hour(s).

A two-person household has a total of 48 hours available per day, with 14 hours required for unpaid domestic work. The remaining time is divided between paid work and non-working (leisure) activities. Arrange the following statements into the correct logical sequence for determining a possible daily time allocation.

Evaluating a Household's Job Opportunity

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