The allocation of consumption,work,and leisure across time to maximize well-being is called:
A) cross-sectional substitution.
B) cross-sectional complement.
C) intertemporal substitution.
D) intertemporal complement.

Question

Quizplus · Accepted Answer

The allocation of consumption, work, and leisure across time to maximize well-being is referred to as intertemporal substitution. This involves making choices about how much to consume and how much to save, as well as how much time to spend working and how much time to spend enjoying leisure activities. Intertemporal substitution is important for understanding how individuals make decisions over time and how they balance current versus future consumption and work. The other options, cross-sectional substitution, cross-sectional complement, and intertemporal complement, do not relate to the concept of time allocation for maximizing well-being.

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