Slide 1Chapter 4 UTILITY MAXIMIZATION AND CHOICE Copyright ©2002 by South-Western, a division of Thomson Learning. All rights reserved. MICROECONOMIC THEORY BASIC PRINCIPLES…

Slide 1Labor Supply : Theory and Evidence Labor supply decisions can be roughly divided into two categories: (1) Decisions about whether to work at all, if so, how long to…

Lec 2 Utility Maximization Utility is a purely theoretical construct defined as: · If an individual prefers bundle x-(x1,x2) to another bundle y-(y1,y2) then an individual…

Chapter 2 Labor Supply Measurement and Definition Labor force (LF) is given by participant either employed (E) and unemployed (U), so LF = E + U. Labor force participation…

Consumer Preferences, Utility Functions and Budget Lines Overheads Utility is a measure of satisfaction or pleasure Utility is defined as the pleasure or satisfaction obtained…

Tradeoffs Choices involve tradeoffs and consequences. - give up to get It involves a value judgment. - decide the relative importance of alternatives Budget Constraint Each…

Economic Behaviour of Household: Theory of Time Allocation (Gary Becker) Dwini Handayani Two time uses in neoclassical economics: leisure market work (labor) Three time uses…