7b. The Labor-Leisure Problem

In this video, I present the basics of the labor-leisure problem in microeconomics. In particular, I work an example from my childhood when I learned the time value of money by being paid to do my chores. This video gives the basic framework for the labor-leisure problem. There are more complicated scenarios. If you have demand for seeing a more complicated scenario, leave a comment on this video. This video relates most closely to my consumer theory unit and the unit on endowment economies. You can view the labor-leisure budget constraint as a special case of an endowment economy. The individual is endowed with 24 hours of leisure and can trade that off. Hope this is helpful! Check out a description of my teaching activities here: www.tonycookson.com/teaching Check out a list of the videos in this series (organized by topic) here: http://blog.thisyoungeconomist.com/p/learn-microeconomics.html The book my videos follow and supplement is available for purchase at Lulu.com (I self-published it). www.lulu.com/cookson If you like my videos, book or approach to economics, the best compliment is a referral of my resources to a friend. If they're like you, it's a pareto improvement. For more on pareto improvements, see this video: http://www.youtube.com/watch?v=uFooIEoBPq0