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Optimizing Study and Leisure Time
A student is preparing for an exam. They are currently at a point where giving up one hour of study time (gaining one hour of free time) would result in a 2-point drop in their expected exam score. However, they feel that an extra hour of free time is worth a 3-point drop in their score. Explain, using the relationship between the trade-off the student faces and their personal preference, why they are not currently at their optimal balance of study and free time. What should they do to improve their overall well-being?
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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
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
Analysis in Bloom's Taxonomy
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Optimizing Study and Leisure Time
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A student is deciding how to allocate their time between studying (which improves their final grade) and leisure. For each scenario below, match the relationship between the student's trade-offs with the action that would increase their overall satisfaction.
A consultant is deciding on their work-life balance. They find that at their current workload, the opportunity cost of one more hour of free time is a loss of $150 in billing. Their personal valuation of that extra hour of free time is $200. Because the amount they are willing to give up ($200) is greater than the amount they must give up ($150), they have an incentive to work ____ hours.
A freelance writer currently works 9 hours a day, earning $450. They calculate that working one hour less would reduce their earnings by $50. However, when considering their personal preference for leisure, they feel that an extra hour of free time is worth as much as $70 to them. Arrange the following steps in the logical order of the decision-making process the writer should follow to improve their overall satisfaction.
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Consider a student's choice between hours of free time (on the horizontal axis) and their final grade (on the vertical axis). The diagram provided shows the student's feasible frontier and an indifference curve that intersects the frontier at point A. At point A, the slope of the indifference curve is steeper than the slope of the feasible frontier. Which of the following actions would lead the student to a higher level of overall satisfaction?
Optimizing Study and Leisure Time