Friday 23 May 2014

trade-off between work and leisure

If you’ve looked at labour markets, you’ll understand the basic theory: workers seek to supply more labour as wage rates rise, and the returns to work mount up. However, at some point, the marginal utility of extra leisure exceeds the marginal utility of extra income.
In other words, rich people start working less, because they can afford to. And for most of human history rich people had the most leisure, but that might be changing.

http://www.tutor2u.net/blog/index.php/economics/comments/the-trade-off-between-work-and-leisure-update