Participation in the labor force is a personal decision that can
be illustrated using indifference curves and budget
A. Explain and show graphically why a person with non-labor
income may choose not to participate in the labor force, relating
this decision to the concept of the reservation wage.
B. Explain and show graphically why a person may choose to
“moonlight” or to work additional part-time hours.
C. Explain and show graphically how unpaid absenteeism may be
related to requirements that people work a standard 40-hour work