Wage labor households maximize their utility by choosing ________.

Question

Quizplus · Accepted Answer

Wage labor households maximize their utility by choosing the consumption of food, non-food, and enjoyment of home time. This is because households have limited income and must allocate it in a way that maximizes their overall satisfaction. They must balance their spending on necessities like food with spending on leisure activities and non-essential items. Similarly, they must also allocate their time between work and home time to maximize their overall well-being. Thus, choosing a combination of all three options would lead to the most optimal utility for wage labor households.

Wage Labor Households Maximize Their Utility by Choosing ________