In the labour market, utility maximizing individuals:
A)divide their time between work and leisure.
B)choose the goods and services they consume.
C)maximize their wealth.
D)minimize time spent working.

Question

Quizplus · Accepted Answer

Utility maximizing individuals divide their time between work and leisure in order to maximize their overall satisfaction. They choose the optimal combination of hours worked and leisure time to achieve their desired level of income and leisure. Therefore, option A is the correct answer. Options B and C are not necessarily true for all individuals, as income and consumption choices can vary based on personal preferences and circumstances. Option D is not a true statement, as utility maximizing individuals do not necessarily minimize their time spent working, but rather aim to optimize their work-leisure balance.

In the Labour Market, Utility Maximizing Individuals