On a separate sheet of paper draw a labor-leisure diagram


On a separate sheet of paper, draw a labor-leisure diagram with consumption ($) on the vertical axis, and hours of leisure on the horizontal axis. Assume there are 16 discretionary hours in a day, and that wage is $20 per hour, and unearned income, V, is $5. Draw the budget constraint for a day, labeling the endpoints, and draw a utility maximizing indifference curve. Label approximate hours of leisure, labor, and earnings at the optimal point (choose numbers that appear to fit your curve). Bring this paper with you to turn in before class, or submit a high quality picture or scan of your hand written graph.

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Financial Management: On a separate sheet of paper draw a labor-leisure diagram
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