Rowan is deciding whether to pick up more hours at work or to take a vacation.This decision best describes
A) her hours decision.
B) her labor force participation decision.
C) the value she places on income.
D) the labor-leisure trade-off.
E) the necessity of income.

Question

Quizplus · Accepted Answer

Rowan is facing a trade-off between working more hours to earn more income and taking a vacation to enjoy leisure time. This decision best describes the labor-leisure trade-off, which is a fundamental concept in economics that underlies all labor market decisions. Rowan must consider the opportunity cost of her time, balancing the benefits of earning more income against the benefits of having more leisure time.

Rowan Is Deciding Whether to Pick Up More Hours at Work