If you have an increasing marginal utility for leisure, then as you work more to make greater income, your
A) Total utility for leisure decreases.
B) Marginal utility for income decreases.
C) Marginal utility of income varies positively with the money you earn.
D) Marginal revenue product decreases.

Question

Quizplus · Accepted Answer

If you have an increasing marginal utility for leisure, it means that the more leisure time you forego to work, the more you value each additional unit of leisure time. As you work more to make greater income, you value each additional dollar less because you are sacrificing more of the leisure time you increasingly value. This leads to a decrease in the marginal utility for income, as you would prefer the leisure you are giving up over the additional income.

If You Have an Increasing Marginal Utility for Leisure, Then