One constraint in our economy is time. As a society, we make choices about allocation of time between work and other pursuits. In the U.S., most workers are eligible for overtime pay if they work more than 40 hours a week, whereas most European workers become eligible at 35 hours per week. In addition, workers in Europe have guaranteed vacation time, five weeks in France, a benefit not available in the US. As a result the typical U.S. worker puts in about 2000 hours per year compared to 1700 hours per year in France and Germany.

Should U.S. laws be changed to require a shorter work week and longer vacation time? For each side of the question list at least two strong arguments. Use the following concepts at least once:

a.Opportunity Cost

b.Marginal decision making

c.Diminishing returns.

An argument for a shorter U.S. work week and longer vacation time:

A shorter work week and longer vacation time will likely provide more rest to the American worker and increase engagement in the workplace. These factors could increase the productivity of the American worker per hour. In other words, they may be working less, but they are getting more done in the allotted hour than previously. Due to the law of diminishing returns, the labor productivity output per hour of the workers is likely to decrease over time, especially with the burden of working overtime. Once the optimal working hours have been achieved, for each additional hour worked, the worker will produce a smaller amount. Therefore, by working less, the workers could potentially achieve their optimal output level per hour.

A worker who works less is more likely to make safer decisions. It's less likely that a potentially more rested employee can work safer, which would result in less injury and medical costs, as well as less lost time of work.

An argument for keeping the same U.S. work week and vacation time:

For every hour that Americans don't work, there's an opportunity cost for the worker. If they were to not work, the worker produces less and receives less income. This means their wealth would decrease.

Working more hours will translate into a greater output for the company. This increase in output is likely to increase the revenue of their company. The company is likely to use marginal decision making, thereby ensuring that the marginal costs of paying the workers is less than the marginal benefits of the increase in output. With this extra revenue, the company could reinvest the amount into the company. All of these factors are likely to also increase the gross domestic product (GDP) of American society.