Final answer:
The value of indoor work is determined by its contribution to the employer's output and revenue generated. A worker's worth to a firm is determined by the revenue they generate. In the scenario of the consultant, it is more economically advantageous for her to spend time at her consulting job and buy vegetables.
Step-by-step explanation:
In the context of labor economics, the value of indoor work is determined by the contribution it makes to the employer's output and the revenue generated. If a worker can produce two widgets per hour and each widget is sold for $4, then the worker is generating $8 per hour in revenue to the firm.
Based on profit-maximization, the employer would pay the worker up to, but not more than, $8 per hour, as that is what the worker is worth to the firm.
Applying this concept to the scenario of the consultant and her vegetable shopping, it makes more economic sense for her to spend her time at the consulting job because she can earn $200 per hour. If she were to spend time growing vegetables, she might not be as efficient and productive.
By focusing on her consulting job and using the money earned to shop for vegetables, she can maximize her overall economic benefit.