Learn Before
The 'More is Better' Principle for Free Time
A fundamental assumption about Karim's preferences is that he always prefers having more free time to less, assuming the amount of consumption is held constant. This principle, also known as non-satiation, is a common assumption in models of consumer choice.
0
1
Tags
Economics
Economy
Introduction to Microeconomics Course
CORE Econ
Social Science
Empirical Science
Science
Related
Consider a graph where the horizontal axis measures 'Hours of Free Time per Day' and the vertical axis measures 'Consumption (€) per Day'. A specific point, labeled 'Z', corresponds to a value of 18 on the horizontal axis and a value of 90 on the vertical axis. What does this point Z represent?
Determining a Consumption-Leisure Bundle
An individual's daily choices can be represented on a graph where the horizontal axis measures 'Hours of Free Time' and the vertical axis measures 'Consumption ($)'. Match each point, described by its coordinates (Hours of Free Time, Consumption), to the correct description of the bundle it represents.
On a graph where the horizontal axis represents daily hours of free time and the vertical axis represents daily consumption, a movement from an initial point to a new point located directly to the right of the initial one signifies an increase in both free time and consumption.
Plotting a Daily Choice
An individual works 9 hours a day and spends all of their daily earnings, which amount to $150, on consumption. On a graph where the horizontal axis represents 'Hours of Free Time per Day' and the vertical axis represents 'Consumption ($) per Day', this specific combination, or 'bundle', would be represented by the coordinate pair ____.
Consider a graph where the horizontal axis represents 'Hours of Free Time per Day' and the vertical axis represents 'Consumption ($) per Day'. An individual's situation changes, causing them to move from Point A, representing 16 hours of free time and $100 of consumption, to Point B, representing 14 hours of free time and $150 of consumption. Which statement accurately describes the change from Point A to Point B?
On a graph where the horizontal axis represents 'Hours of Free Time per Day' and the vertical axis represents 'Daily Consumption ($)', an individual is evaluating four possible daily combinations of these two goods. Which of the following points represents the combination with the most free time but the least consumption?
Analyzing Daily Choice Trade-offs
An individual's daily combination of free time and consumption can be represented as a point on a graph. The following descriptions represent three different days for a person. Arrange these days in order, starting from the day with the least amount of free time to the day with the most amount of free time. (Assume a 24-hour day).
The 'More is Better' Principle for Free Time
Karim's Preference for More Free Time
Figure E3.1: Mapping Karim's Preferences
Learn After
An individual's preferences for combinations of daily free time and daily consumption are represented on a standard preference map where having more of either good is always preferred. An indifference curve, IC1, passes through Point X (16 hours of free time, $70 consumption). Match each of the following points to the statement that correctly describes its relationship to Point X.
An individual's preferences are represented on a graph with daily free time on the horizontal axis and daily consumption on the vertical axis. Assume this individual always prefers more free time to less, holding consumption constant. If Point A represents 15 hours of free time and $100 of consumption, which of the following points is definitively preferred to Point A based only on this principle?
An individual's preferences are modeled on a graph where more free time is always preferred to less, holding consumption constant. Given this, the individual would be indifferent between a bundle of 18 hours of free time and $100 of consumption, and a bundle of 17 hours of free time and $100 of consumption.
Evaluating Job Offers
Evaluating Job Offers
Job Offer Choice Based on Free Time
An individual's preferences are modeled on a graph with daily free time on the horizontal axis and daily consumption on the vertical axis. A core assumption is that, holding consumption constant, this individual always prefers more free time to less. If Point A represents a specific combination of free time and consumption, which other point is guaranteed to be preferred to Point A, based solely on this assumption?
An individual's preferences are modeled with daily free time on one axis and daily consumption on the other. A core assumption is that, holding consumption constant, more free time is always preferred. Consider an initial situation represented by Point A: 17 hours of free time and $120 of consumption. For which of the following points can a preference ranking relative to Point A not be determined using only the stated assumption?
An individual's preferences are represented on a graph with daily free time on the horizontal axis and daily consumption on the vertical axis. A single combination of these two goods is marked as Point A. We are given only one piece of information about this individual's preferences: holding the level of consumption constant, they will always prefer a combination with more free time. Based solely on this information, which of the following describes the set of all points that are unambiguously preferred to Point A?
Implication of the 'More is Better' Principle on Indifference Curves