One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker's budget line,the model can not explain why some people choose not to work.

Question

Quizplus · Accepted Answer

Labor-leisure indifference curve analysis can explain why some people choose not to work by showing that their preferences for leisure may be higher than their preferences for income, resulting in them not working or working fewer hours. Therefore, the statement is false.

One Deficiency of Labor-Leisure Indifference Curve Analysis Is That Because