Haley has 20 hours to devote to work or leisure. If she wants to increase her income, she must increase both her labor and leisure hours at the same time

If we are trying to maximize economic efficiency, which one of the following statements is true?

a. Reducing current consumption to save some resources for the future may be optimal b. Maximizing current consumption is optimal c. Consumption should always be divided equally among time periods d. Consumption rates should rise at a rate equal to the rate of interest e. Consumption rates in a time period are not related to interest rates

Economists talk about trade-offs a lot because they have come to understand that whenever there is a winner from a policy or transaction, there must also be a loser.

Answer the following statement true (T) or false (F)