Which of the following events will likely make indifference curves (between income on the vertical axis and household time on the horizontal axis)flatter?

Question

Quizplus · Accepted Answer

If new inventions make it easier to substitute market goods for household time (such as automated appliances, food delivery services, etc.), the household can achieve the same level of utility with less time at home. This means that the household will be willing to give up more income to have more time at home, resulting in flatter indifference curves.

B, C, and D are unlikely to make the indifference curves flatter. Valuing time spent with children more highly may lead to steeper indifference curves as households are willing to give up more income to spend time with their children. Similarly, an increase in income usually leads to a steeper indifference curve because the household is willing to give up less income for the same amount of time at home. Finally, smaller future wage penalties for staying at home may make households more likely to choose to spend time at home, but it does not necessarily make them willing to give up more income for that time, so the indifference curves would not necessarily be flatter.

Which of the Following Events Will Likely Make Indifference Curves