The allocation of consumption,work,and leisure across time to maximize well-being is called:
A) intertemporal substitution.
B) labor adjustment cost.
C) time bunching
D) collateral damage.

Question

Quizplus · Accepted Answer

Intertemporal substitution refers to the allocation of consumption, work, and leisure across time to maximize well-being. It involves making trade-offs between present and future consumption, as well as between work and leisure time. By balancing these trade-offs, individuals can optimize their well-being over time. Labor adjustment cost refers to the costs associated with changing the amount of labor supplied, while time bunching refers to the clustering of work or leisure activities at certain times. Collateral damage is a term used to describe unintended negative consequences of an action.

The Allocation of Consumption,work,and Leisure Across Time to Maximize Well-Being