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Tags
#cfa-level #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
In labor markets , households offer to sell their labor services when the payment they expect to receive exceeds the value of the [...] they must forgo.
Answer
leisure time

Tags
#cfa-level #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
In labor markets , households offer to sell their labor services when the payment they expect to receive exceeds the value of the [...] they must forgo.
Answer
?

Tags
#cfa-level #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
In labor markets , households offer to sell their labor services when the payment they expect to receive exceeds the value of the [...] they must forgo.
Answer
leisure time
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In one type of factor market, called labor markets , households offer to sell their labor services when the payment they expect to receive exceeds the value of the leisure time they must forgo. In contrast, firms hire workers when they judge that the value of the productivity of workers is greater than the cost of employing them. A major source of household in

Original toplevel document

2. TYPES OF MARKETS
fact may seem obvious, but it is fundamental to our understanding of markets. If a buyer values something more than a seller, not only is there an opportunity for an exchange, but that exchange will make both parties better off. <span>In one type of factor market, called labor markets , households offer to sell their labor services when the payment they expect to receive exceeds the value of the leisure time they must forgo. In contrast, firms hire workers when they judge that the value of the productivity of workers is greater than the cost of employing them. A major source of household income and a major cost to firms is compensation paid in exchange for labor services. Additionally, households typically choose to spend less on consumption than they earn from their labor. This behavior is called saving , through which households can accum

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