If a person's marginal utility from an additional hour of leisure is less than the marginal utility gained from goods bought with the wages earned from an additional hour of labour,then this person should:
A) continue to work the hours he or she is working.
B) work less since he or she is working more than the optimal number of hours.
C) work more since he or she is working less than the optimal number of hours.
D) quit work since he or she is not earning enough to satisfy his or her time allocation.

Question

Quizplus · Accepted Answer

The person should work more because the marginal utility from goods bought with wages is higher than the marginal utility from leisure, indicating that working more hours would increase their overall utility.

If a Person's Marginal Utility from an Additional Hour of Leisure