Procrustean Art of Backtracking: “Leisure vs. Consumption”
A few premises from the ABC of economics: 1) Demand is for the marginal benefit at the marginal cost of a price in a defined currency unit. 2) Supply is for the marginal benefit of a price at the marginal cost of production in the currency unit. 3) A price is set between the buyer aka demander and the seller aka supplier. 4) “The price” of “equilibrium” is imaginary and by definition metaphorical. Amazingly, graceful or surprising, macroeconomists propose as follows: 1) <Figure 13-4> As Wages Rise, Workers May Work Fewer Hours. … Because at higher wages workers can afford more leisure … (Samuelson and Nordhaus, Economics , 19 th ed., p.252). 2) The essence of the time-allocation problem is the trade-off between leisure and consumption (Gregory Mankiw, Principles of Economics , 6 th e...