Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

International Baccalaureate Extended Essay

What is the optimum use of time spent on academics, extracurricular activities, socializing and sleeping?

Name: Fung Yue Kwong Ray School: Li Po Chun United World College of Hong Kong Candidate number: 000638036 Supervisor: Ms. Esther Chau Word Count: 3994

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Abstract Time is like wealth: every day, a fixed amount of money is given to us to invest in different things. In Li Po Chun United World College (hereby abbreviated as LPC), students often experience difficulties in managing time between their daily activities. This failure in balancing time allocation has led to problems such as sleep deprivation and unsatisfactory academic results. In this paper, I attempt to identify these time management problems and explain them by utilizing economic concepts and theories. To make the investigation simpler, I limited LPC students daily life to four categories: academics, extra-curricular activities (hereby abbreviated as ECAs), socializing and sleeping. As students gain utility from their daily activities, their preference and satisfaction from different activities would largely affect their choices in a fixed amount of time. To effectively analyze modes of time expenditure, I employed two relevant theories the utility theory of demand and the indifference preference theory. My evaluation of time consumption takes on a comparative approach. Firstly, I explained the two listed theories and explained how they relate to time consumption. Secondly, in order to obtain information on students time use, I conducted surveys with LPC students on their preferences and utility levels. After initial analysis using economic theories, I discovered that students actions attain neither maximum utility nor consumption efficiency. Lastly, to counteract this situation, I proposed methods to raise utility levels, increase efficiency and boost available time based on the two theories. Under an investment mindset, I have concluded that sleeping hours should be raised to 9 hours per day and socializing time should be decreased. Through a raise in academic efficiency, academics time can be reduced, while time on ECAs can be left unchanged. Word count: 283

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Contents
Page

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Abstract 1. Chapter 1 Introduction 1.1. Background and interpretation of the research question 1.2. Hypothesis 1.3. Methodology 2. Chapter 2 Consumer theory and how it relates to time allocation 2.1. Utility theory of demand 2.1.1. Law of diminishing marginal utility 2.1.2. Utility theory of demand 2.2. Indifference preference theory 2.2.1. Indifference curve and budget line 2.2.2. Indifference map 2.2.3. Optimal equilibrium 2.2.4. Change in real income 3. Chapter 3 Interpretation of survey results 3.1. Preliminary analysis using utility theory of demand 3.2. Graphical presentation of data using indifference preference theory 4. Chapter 4 Improving time allocation 4.1. The importance of an investment mindset 4.2. Possible changes suggested by the utility theory of demand 4.3. Increasing efficiency using indifference preference theory 5. Chapter 5 5.1. Limitations 5.2. Conclusion Bibliography Appendix 1 Survey questionnaire and rationale Appendix 2 Results, charts and comments from questionnaire Limitations and conclusion

2 4~5

6~9

10~13

14~18

19~20

21 22~26 27~31

1.

Chapter 1

Introduction

1.1. Background and interpretation of the research question

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

There was once a proverb: Time is Gold; my extended essay will use this as a kickboard to investigate students modes of time allocation. I am interested in carrying out an indepth study into the scarcity problem that all LPC students face time. For LPC students, the 4 major time-consuming events are academics, ECAs, socializing and sleeping. The research question of this essay is: What is the optimum use of time spent on academics, extra-curricular activities, socializing and sleeping? The definition for optimum is the [best possible]1. Academics includes homework, revision and field work. ECAs include Quan Cais2, regular recreation such as sports or reading, external involvements and competitions. Socializing is defined as [to meet and spend time with people in a friendly way, in order to enjoy yourself]3; it includes discussions with other students and carrying out activities such as drinking and clubbing. The definition for sleep is quality sleep on bed. Through comparing time and resource allocation, this EE shall analyze time distribution patterns in LPC and apply economic principles to optimize time expenditure. These shall be done by employing two relevant theories the utility theory of demand and the indifference preference theory. By working on this title, I hope to gain insights in using time, hence I can gain actual benefits from this extended essay. 1.2. Hypothesis My current hypothesis is: Compared to the current time allocation pattern, time on academics and sleeping should be increased, while that on ECAs and socializing should be decreased. My hypothesis is deduced from public opinion and personal observation. Compared to local day schools, LPC as a residential college offers students a large degree of freedom. Without a strict time schedule, students in LPC may find it difficult to get the right balance between homework, participating in ECAs and socializing on campus.4 This results in sleep deprivation, late and absent classes, unfinished homework and unsatisfactory academic performance.5In my opinion, students should gain a balance between the four aspects and assign adequate time for each item. Therefore my hypothesis aims at reducing excessive time spent on socializing and ECAs, thus using this additional time for the remaining two elements.
1 2

A. S. Hornby Oxford Advanced Learner's Dictionary (UK: Oxford University Press, 1998) In Chinese , which means the development of all of ones faculties. As recommended by the International Baccalaureate Organization, this program embodies action (sports), campus support, creativity (interest-based activities) and service components. This enables students to maintain healthy bodies, give back to the community and extend their hobbies.- Li Po Chun United World College: About LPCUWC http://www.lpcuwc.uwc.org/en/about/about_chinese.php#qc (date accessed: 21st Jan, 2007) 3 Footnote 1 4 Michele Morvan, Head of Residences of LPC, email message, 8th Jan,2007 5 Pg. 30-31 Appendix 2

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

1.3. Methodology To test my hypothesis, I have interviewed 92 LPC students to find out about their time consumption pattern in a given time frame. In addition, I have collected information on their preferences towards different activities, their opinions on difficulties experienced as well as possible improvements in time allocation.

2.

Chapter 2

Consumer theory and how it relates to time allocation

2.1. Utility theory of demand

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

It is essential to understand that this topic deals with choices and preferences. Economics is about scarcity, so is time management. Time is limited, therefore one would spend more time on preferable activities, i.e. those with greater utility. The models that I shall employ concern mainly the utility theory of demand and the indifference preference theory. In this chapter, I shall first explain these theories and then relate them to time management. 2.1.1. Law of diminishing marginal utility The basic assumption of utility theory, sometimes called the law of diminishing marginal utility, is as follows: The utility that any consumer derives from successive units of a particular product diminishes as total consumption of the product increases while the consumption of all other products remains constant.6 This is explained by the fact that ones desire for a good decreases as one consumes more, leading to less additional satisfaction in ones successive consumptions. The economists who developed marginal utility theory assumed that utility can be measured in some abstract units called utils.7 Similarly, carrying out different activities would give different utility, thus affecting the way time is allocated. However, it is important to first realize why I have divided LPC life into only 4 categories. Many may argue that this comparison is unfair, since in reality we have other activities such as traveling, eating and working both inside and outside LPC. The reason for the creation of such 4 categories is mainly due to convenience in analysis. Under the strict word limit of 4000 words, I believe considering too many aspects will only lead to an incomplete analysis or failure in gaining a conclusion. Moreover, my ability and knowledge in Economics limits my reasoning, so I do not wish to go beyond what I understand. Another point to note is that all activities are limited to after-school hours which exclude meal hours. This is because one can only gain freedom in managing their time after mandatory schooling and meal hours. This time, by rough estimation is 17 hours: (Total 24 hours)-(School 7.30~8.30, 9.00~1.30)-(Meals 8.30~9.00, 1.30~2.00, 6.00~6.30) = 17 hours As activities can be considered as goods and time can be considered as resources to be distributed among different activities, it follows that students gain utility from their daily activities. For example, utility from academics originates from good grades, praise from teachers, good school reports and future access to good universities. According to the law of diminishing marginal utility, it can be predicted that the extra utility per additional hour of activity will fall.
6
7

Richard Lipsey and K. Alec Chrystal Principles of Economics (UK: Oxford University Press, 1999), 128 Lipsey and Chrystal, 129

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

2.1.2. Utility theory of demand The basic assumption of the theory of consumer behaviour is that consumers seek to maximize total utility. According to the utility theory of demand, the consumer will allocate expenditure among products so that the utility derived from the last unit of money spent on each is equal; i.e. the point at which the consumer would value the last unit of each product consumed equally. 8 This applies to time management as well: if the utility of the last hour spent on sleeping is three times the utility of the last hour spent on socializing, total utility can be increased by switching hours from socializing to sleeping. The student will continue to switch resources as long as each hour of sleeping has more utility than socializing. This process reduces the hours of socializing, thus raising marginal utility of socializing (law of diminishing utility); on the other hand hours of sleeping is increased, therefore its marginal utility is decreased. Eventually the marginal utilities will equalize, this condition is represented by the equation: MUx/Px=MUy/Py9 Comparing such values of different activities enables us to see whether students have effectively allocated their time to achieve maximum utility. 2.2. Indifference preference theory 2.2.1. Indifference curve and budget line The indifference curve describes consumers tastes, while the budget line describes the consumption possibilities open to them. The indifference curve essentially represents the bundles of goods that give the same utility to a consumer, i.e. when the consumer is indifferent. 10 The key embedded concept is diminishing marginal rate of substitution it measures the amount of one product the consumer must be given to compensate for giving up one unit of the other. In fact, the absolute value of the slope of the curve is the marginal rate of substitution the steeper the slope, the more goods on the y-axis the consumer is willing to sacrifice for one unit of the good on the x-axis. 11 2.2.2. Indifference map In reality, an indifference map that consists of a set of indifference curves is drawn. The further away the curve is from the origin, the higher the level of satisfaction it represents.12

8 9

Lipsey and Chrystal, 130 Lipsey and Chrystal, 131 10 Lipsey and Chrystal, 141 11 Robert H. Frank Microeconomics and Behaviour (USA: McGraw-Hill Companies, 1997), 85-86 12 Paul A. Samuelson and William D. Nordhaus Economics (USA: McGraw-Hill Companies, 1998), 97-98

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Quantity x per time unit

I3 I2 I1 Quantity y per time unit

Graph 1 An indifference map

In the case of time management, it is virtually impossible to obtain an accurate indifference curve. Firstly it is because activities cannot be defined by units. Secondly, it is difficult for one to determine which bundles of activities would yield equal satisfaction, since this depends largely on different situations. The property that is possible to determine is the shape of the curve, since the slope is affected by students preferences. 2.2.3. Optimal equilibrium Combining both graphs, the equilibrium of the consumer is found where the indifference curve is tangent to the budget line. This is because if a consumer wants maximum satisfaction, he/she would try to reach the highest attainable indifference curve within the given limits. At that point, it is impossible to reach a higher indifference curve by varying the bundle consumed.13 2.2.4. Change in real income A change in the consumers income will, ceteris paribus, shift the budget line outwards. As the budget line indicates consumers consumption possibilities, it shifts outward when income rises and inwards when income falls. For every level of income, there will be an equilibrium position at which the indifference curve is tangent to the relevant budget line:14

13 14

Lipsey and Chrystal, 148 Lipsey and Chrystal, 148

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Quantity x per time unit

I2 I1 Quantity y per time unit

Graph 2 Effect of rising income

I3

In the context of time management, an increase in income is made possible through increased efficiency. Similar to how consumers with higher income can buy more products, higher efficiency enables higher productivity per time unit. In the end, higher efficiency creates a virtual increase in time, meaning that more can be done per time unit.

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

3.

Chapter 3

Interpretation of survey results

In this chapter, I shall investigate if the optimal equilibrium of time allocation is attained by LPC students who have taken the interview. If not, I shall look into the problems where time may be allocated differently. 3.1. Preliminary analysis using utility theory of demand According to the utility theory of demand, utility is maximized when MUx/Px=MUy/Py. However tailoring the equation to this context, maximum utility is attained when MUa/Ta=MUe/Te=MUso/Tso=MUs/Ts, where T is time spent, MU is marginal utility, a is academics, e is ECAs, so is socializing and s is sleeping. Taking results from survey questions 1,5,6,7 and 815, the following calculations are made: MUa/Ta =50.6/3.5 =14.5 MUe/Te =62.4/2.9 =21.5 MUso/Tso =71.7/3.8 =18.9 MUs/Ts =86.1/6.5 =13.2 Therefore MUa/Ta MUe/Te MUso/Tso MUs/Ts Due to the unequal values, maximum utility is not attained. This means despite the fact that LPC students know their time preferences and have deliberate time allocation, they do not gain the satisfaction that they should gain. This may signify poor determination or exceeding expectations that one cannot achieve. Zooming in, values for ECAs and socializing are relatively high, while that of academics and sleeping are relatively low. This reflects how students would rather sacrifice time for academics and sleeping in exchange for time on ECAs and socializing. This phenomenon may contribute to a vicious cycle which students spend too much time on ECAs and socializing, therefore they procrastinate and work late into the night. Consequently, they suffer from sleep deprivation and lose concentration, in the end choosing ECAs and socializing instead of finishing their work. From a philosophical point of view, at this stage, students may be too young to realize the significance of their actions. Socializing and ECAs may create enjoyment immediately; yet academics and sleeping may be advantageous to their future! As teenagers living in this materialistic age, students may be compelled to base their actions on instant pleasure, but not future benefits. Another point worth noting is the utility data collected from academics and sleeping. In questions 5 and 8 of my survey, I have asked students to indicate their level of satisfaction in each continuous hour of every activity16. According to the law of diminishing marginal utility, the level of satisfaction (i.e. utility) should decrease as time passes. However results have shown that students on average have the highest utility level in the second hour 17,
15 16

Pg. 27, 29-30 Appendix 2 Pg. 24-25 Appendix 1 17 Pg. 29-30 Appendix 2

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

which contradicts economic theory. This shows how students are not attaining consumption efficiency, that is, they cannot make the most out of every hour of activity. In the case of academics, this may be due to a lack of concentration during the first hour of study or not being able to jump into the studying mentality. For sleeping, this may be because of noisy roommates and bright surroundings, which creates an undesirable sleeping environment and adversely affects sleeping quality.18 3.2. Graphical presentation of data using indifference preference theory Firstly, a graph comparing hours used on leisure and work is plotted. To explain how data is converted into graphs, the following is a detailed procedure on how my survey data can be related to the indifference preference theory. Assume that every hour of not working is spent on leisure. Given that total time available is 17 hours, a budget line is plotted as follows. Next, calculate the hours spent on leisure and time respectively from survey question 119 to find the current equilibrium: Activity Time spent Work Tw=Ta+Te=3.5+2.9=6.4 Leisure TL=Tso+ Ts=3.8+6.5=10.3 *The total time may not be equal to 17 hours due to statistical errors.20

18

National Sleep Foundation- The Sleep Environment http://www.sleepfoundation.org/sleeplibrary/index.php?secid=&id=358 (date accessed: 21st Jan, 2007) 19 Pg. 27 Appendix 2 20 Pg. 19 Section 5.1

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Indiffe rnceCurveof Le isurea inst Work ga

Leisure (hours)

A B I1

Work (hours)

Graph 3 Indifference curve of leisure against work

According to the diminishing marginal rate of substitution, a student will give up less and less hours of leisure to further increase his/her working time by one hour. To explain the specific shape of the indifference curve I1, as 67.4% of the students prefer leisure to work, while only 7.6% prefer work to leisure21; students tend not to sacrifice leisure hours in exchange for working hours. Therefore comparing A and B, there is a relatively greater trade-off rate from working hours to leisure hours when there are little leisure hours (B), while there is a relatively smaller trade-off from leisure hours to working hours when there are little working hours (A).

21

Pg. 28

Appendix 2

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Secondly, the indifference curve of sleeping against socializing is plotted. From survey question 4, the majority of the students (57.6%) prefer socializing to sleeping22; therefore students tend not to sacrifice socializing hours in exchange for sleeping hours. Comparing C and D, there is a greater trade-off rate from sleeping hours to socializing hours when there are little socializing hours (C), while there is a relatively smaller trade-off from socializing hours to sleeping hours when there are little sleeping hours (D).
Indiffe nce curve of sle ping a inst socia re e ga lizing

Sleeping (hours)

C D I2

Socializing (hours)

Graph 4 Indifference curve of sleeping against socializing

Thirdly, from survey question 3, the majority of students (64.1%) prefer ECAs to academics23. As a result, the graph of academics against ECAs is similar to graph 5, except for the position of the equilibrium.

22 23

Pg. 29 Pg. 28

Appendix 2 Appendix 2

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

4.

Chapter 4

Improving time allocation

4.1. The importance of an investment mindset Rather than focusing on immediate joy, students can learn how to invest in activities and earn long-term benefits by making rational choices. Referring to section 3.1, students may not be making the best decisions since they spend more time on enjoyable activities, i.e. socializing and ECAs, rather than activities that can potentially lead to long-term returns, i.e. academics and sleeping. Spending quality time on academics does not only yield good examination results, but also leads to higher predicted grades24 and helps with future university applications. On the other hand, quality sleep enables higher efficiency and heightened concentration25. This is similar to how people would invest their money in buying stocks or real estates rather than spending every single penny on consumption goods.26 Although it is undeniable that socializing and ECAs do long-term benefits such as building lifelong friendships and enriching ones experiences, students should not neglect the advantages of studying and sleeping. This does not imply that students should immediately allocate time slots to academics and sleeping, but reminds students that they should place stronger emphasis on these two aspects and avoid placing them at the lowest priority.27 4.2. Possible changes suggested by the utility theory of demand Firstly, to attain maximum utility and MUa/Ta=MUe/Te=MUso/Tso=MUs/Ts, the average marginal utility of academics and sleeping can be raised in order to equalize values to a middle balance. As the most academically outstanding United World College28, LPC boasts the academic caliber of its students and has maintained high International Baccalaureate (hereby abbreviated as IB) scores every year. This gives pressure to current students and forces them to study for examinations, instead of learning for the sake of knowing. This stressful academic environment has reduced satisfaction gained from academics and suppressed its marginal utility levels. To motivate students to study, there should be different solutions that cater for both Hong Kong and overseas students. For local students, the Hong Kong education system has long been criticized as rote learning, meaning that it requires students to forcibly memorize rather than learn. 29 To relieve local students of this stereotype, LPC teachers may spend time on topics beyond the curriculum and spark students interest to learn. For overseas students, the school should discourage a purely academic approach and emphasize how
24 25

A score out of 42 based on teachers prediction of a students final IB grade Pg. 15 Section 4.3 26 Robert T. Kiyosaki, Sharon L. Lechter, Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! (USA: Warner Business Books, 2000) 27 As suggested by students in Appendix 2 question 9 28 Li Po Chun United world College: Contact LPCUWC http://www.lpcuwc.uwc.org/en/about/about_results.php (date accessed: 21st Jan,2007) 29 InternationalSpotlight on Hong Kong (Business Week online) http://www.businessweek.com/2000/00_33/c3694189.htm (date accessed: 21st Jan,2007)

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

learning may promote UWC ideals (e.g. learning Environmental Studies can help one to live an environmentally-friendly lifestyle). Under the investment mindset, the school can also help its students see the long-term impacts of academic achievements through activities such as careers or university admission talks; so that students can adequately prepare, but not be overly stressed about their academics. Regarding sleep, from my experience, the creaking and banging noises produced by door hinges, closet doors and drawers cause a major irritation to normal sleeping. To increase the marginal utility of sleeping, the school can install rubber door silencers to these hardware and reduce the sound upon impact.30 Secondly, to improve initial satisfaction levels in academics and sleeping, LPC students can seek ways to optimize their studying and sleeping environment. They can study in quiet places such as the library or classrooms to boost their concentration. With the extension of library opening hours31, students may take advantage of these facilities and improve their quality of studying. Should students study in their room, they can set up working periods which no visitors are allowed entry and no roommates are allowed to play music. A desirable sleeping environment also relies on darkness32. This depends largely on the cooperation and understanding between roommates. Students may also purchase curtains or eye masks to block out light from desk lamps. 4.3. Increasing efficiency According to Mary A. Carskadon, the Director of Chronobiology/Sleep Research at the E.P. Bradley Hospital and Professor of Psychiatry and Human Behavior at Brown Medical School in Providence, teenagers require an optimum sleeping time of 9 hours.33 This yields maximum restorative, energizing and revitalizing benefits to our body; which otherwise if not fulfilled will put relationships, productivity, health and safety at risk.34 More sleeping would result in higher productivity35, reducing time needed for homework. Our Director of Studies, Mr. John Green, also stated that the International Baccalaureate Organization expects 9 hours of sleep from students in order to work efficiently. Apart from academics, adequate sleeping can also boost students spirits and bring pleasant relationships among roommates. Conversely, sleep deprivation would weaken students immune system; as a result they are more prone to diseases and may infect their roommates simultaneously.36 In addition, staying active during late hours would disturb roommates sleep, consequently leading to a vicious cycle.
30

- Door Hardware- Door Silencer http://www.chown.com/cgi-bin/lansaweb? PROCFUN+HP1466+HP1466A+HDW+FUNCPARMS+ZXMLNR(S0100):0000000000+ZXJENR(S0100 ):0000032031 (date accessed: 21st Jan, 2007) 31 From 9.00am ~ 11.00pm to 8.30am ~ 1.00am 32 Footnote 18 33 National Sleep Foundation-Sleep and Teens Biology and Behaviour http://www.sleepfoundation.org/hottopics/index.php?secid=14&id=394 (date accessed: 11th Nov, 2006) 34 National Sleep Foundation- Let Sleep Work for You http://www.sleepfoundation.org/sleeplibrary/index.php?id=57 (date accessed: 12th Nov, 2006) 35 Footnote 39 36 Footnote 39

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

By applying a minimum 9 hours limit to sleeping37, graph 4 becomes:

Indiffe nce curve of sle ping a inst socia re e ga lizing

Sleeping (hours)

I3 I2

Socializing (hours)

Graph 5 indifference curve of sleeping against socializing after more sleep

By shifting the indifference curves upwards, while time for socializing may seem to be reduced, students may think of incorporating socializing into their ECAs. While ECAs generally require a certain amount of work, they also enable students to interact within their groups and establish friendships. These interactions are a form of socializing and compensate for the lost time for socializing.38

With more sleep, students have higher academic efficiency and thus their available time 39 is increased:

37 38

Pg. 8 Section 2.2.2. Beta Chau, Extra-Curricular Activities Master of LPC, email message, 8th Jan, 2007 39 Pg. 8 Section 2.2.4.

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Indiffe ncecurveof a de re ca mics a inst ECAs ga

Aca m (hours) de ics

I5

I6

ECAs (hours)

Graph 6 Indifference curve of academics against ECAs after increased efficiency

Please note that the increase in time available for academics and ECAs does not imply a practical increment; rather, it denotes the increased amount of work one can handle per time unit when they are efficient. However, is all of this extra time used necessarily on academics and ECAs? Given that the IB prescribes 3 hours of academic work every week for higher level subjects and 2 hours for standard level subjects40; in addition most LPC students take 3 higher level and 3 standard level subjects41, academic hours needed per day: (3*3+2*3)/7= 2.1 hours This is far less than the 3.5 hours of academic time spent by LPC students 42 and indicates that LPC students are performing inefficiently. Furthermore, assuming every student takes 6 ECAs and each ECA lasts for 2 hours43, ECA hours needed per day: (6*2)/5= 2.4 hours (There are no ECAs on Saturday or Sunday) This is similar to the average 2.9 hours spent on ECAs44 considering that there are other activities such as the Global Issue Forums, International Current Affairs and Cultural Evenings. All these calculations imply that the original amount of time assigned to
40 41

Esther Chau, Economics teacher, direct interview, 10th Jan, 2007 From my personal experience 42 Pg. 27 Appendix 2 43 Footnote 39 44 Pg. 27 Appendix 2

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

academics and ECAs is more than enough. The extra time yielded by higher efficiency can be used to compensate for socializing time which is reduced because of essential sleeping hours. Combining all of the above improvements, the overall graph can be redrawn as follows, in which a higher indifference curve (I7) represents increased satisfaction45:
Indiffe rnceCurveof Le isurea inst Work ga

Leisure (hours)

I7 I1

Work (hours)

Graph 7 Indifference curve of leisure against work after increased efficiency and more sleeping

5.

Chapter 5Limitations and Conclusion

5.1. Limitations

45

Pg. 8

Section 2.2.2.

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

In this extended essay, there are limitations concerning data collection and analysis. Firstly for data collection, a sample size of 92 students may not accurately reflect the time consumption patterns of all LPC students, therefore a complete model cannot be produced. Furthermore, there may be a difference of priority between local and overseas students. This may generate extreme results and affect the accuracy of my analysis. Secondly, time consumption is an extremely subjective and erratic subject that simply has neither set rules nor constant values. This would make accurate analysis difficult as time consumption varies greatly among individuals. Thirdly, the averages of values are employed for further calculations; therefore its derivation from real values may cause discrepancies. Fourthly, as commented by students46, measuring the marginal utility by asking for students satisfaction during continuous periods of the same activity is inaccurate due to the fact that satisfaction is qualitative, not quantitative. No one has ever succeeded in defining such a unit in terms that could be explained to consumers, nor could anyone measure utils objectively.47 This is the major drawback of human economics since the theory of consumer utility is placed in a fixed context, it cannot be wholly applied to human economies. For data analysis, the first limitation is that the indifference curve cannot be accurately plotted, this affects its shape and in turn the position of the equilibrium position. The second limitation lies in the narrow band of activities that are considered, this excludes many other daily activities that take time (e.g. personal hygiene, traveling), thus making the results unreliable. Lastly, time consumption theories proposed by contemporary economists are not considered due to the requirement of advanced knowledge in order to understand the theories. This limits the scope of my investigation and inhibits the accuracy of my analysis. 5.2. Conclusion Throughout this essay, I have examined the optimum use of time spent on academics, extra-curricular activities, socializing and sleeping. This essay focuses on the unwise time allocation of LPC students which would severely affect students health, concentration and productivity. To counteract this undesirable phenomenon, I have proposed solutions according to the utility theory of demand, indifference preference theory, investment principles and considering how efficiency is affected by sleep. From survey results, I have shown that LPC students do not obtain maximum utility and attain consumption efficiency. On the other hand, they are trapped in a vicious cycle of poor time management, which leads to procrastination and sleep deprivation. After detailed analysis, I found that both the students and the school have roles to play in improving time allocation. Firstly students should have an investment mindset and reprioritize their activities. Secondly, students and the school should seek ways to improve the environment and raise students satisfaction levels in academics and sleeping. These
46 47

Pg. 27 Appendix 2 Lipsey and Chrystal, 129

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

would help students to consume efficiently and attain maximum satisfaction. Thirdly, students should insist on 9 hours of sleep in order to raise their working efficiency and benefit others by creating a healthy campus. In conclusion, my final deduction contradicts my original hypothesis partially: time on academics and sleeping should be increased, while that on ECAs and socializing should be decreased. To achieve optimal time distribution, sleeping hours should be increased to 9 hours and socializing time should be decreased (although it may be compensated by increased efficiency); through a raise in academic efficiency, time on academics can be reduced, while time on ECAs is unchanged as it has socializing value. Economics is never accurate and it is even harder to predict human behaviour using Economic theories. The real problem is how can these improvements be promoted to or convince LPC students? Would they be too lazy to bother with altering their lifestyle? To make the essay more applicable to real life, I am interested in how the investigation can be further expanded to other aspects of academic life, such as transportation and shopping. Although this essay does not provide the most accurate and professional advice to improve time management, it presents a reasonable time strategy and points students in the right direction of how to prioritize time.

Bibliography Books

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Paul A. Samuelson and William D. Nordhaus Economics (USA: McGraw-Hill Companies, 1998) Robert H. Frank Microeconomics and Behaviour (USA: McGraw-Hill Companies, 1997) Richard Lipsey and K. Alec Chrystal Principles of Economics (UK: Oxford University Press, 1999) A. S. Hornby Oxford Advanced Learner's Dictionary (UK: Oxford University Press, 1998) Robert T. Kiyosaki, Sharon L. Lechter, Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! (USA: Warner Business Books, 2000) Journals Clifford Sharp The Economics of Time The Economic Journal 366 (1982) Internet Documents National Sleep Foundation-Sleep and Teens Biology and Behaviour http://www.sleepfoundation.org/hottopics/index.php?secid=14&id=394 (date accessed: 11th Nov, 2006) National Sleep Foundation- Let Sleep Work for You http://www.sleepfoundation.org/sleeplibrary/index.php?id=57 (date accessed: 12th Nov, 2006) National Sleep Foundation- The Sleep Environment http://www.sleepfoundation.org/sleeplibrary/index.php?secid=&id=358 (date accessed: 21st Jan, 2007) Survey Design, Questionnaire Design Tips http://www.surveysystem.com/sdesign.htm (date accessed: 4th Jun, 2006) Li Po Chun United World College: About LPCUWC http://www.lpcuwc.uwc.org/en/about/about_chinese.php#qc (date accessed: 21st Jan, 2007) Li Po Chun United world College: Contact LPCUWC http://www.lpcuwc.uwc.org/en/about/about_results.php (date accessed: 21st Jan, 2007) InternationalSpotlight on Hong Kong (Business Week online) http://www.businessweek.com/2000/00_33/c3694189.htm (date accessed: 21st Jan, 2007) Door Hardware- Door Silencer http://www.chown.com/cgi-bin/lansaweb? PROCFUN+HP1466+HP1466A+HDW+FUNCPARMS+ZXMLNR(S0100):0000000000+ ZXJENR(S0100):0000032031 (date accessed: 21st Jan, 2007) Appendix 1 Survey Questionnaire and rationale Rationale

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

This is a topic that is based on the LPC community itself; therefore conclusions have to be drawn from empirical evidence instead of mere predictions. An online survey was drafted using the services provided by Free Online Surveys.com: http://FreeOnlineSurveys.com/rendersurvey.asp?sid=h1talv1d50hsw2r213085 To make my survey more appealing and inviting to fill in, I chose a web-based survey system by Problem Free Ltd. This type of survey has quite a few advantages, including speed of gathering responses, low cost, high efficiency, letter formatting and the ability to receive honest and longer answers compared to self-administered surveys.48 Another pro is its consistency all questions are asked in the same way, preventing any bias. In addition, I do not have to spend a lot of time giving out forms and collecting them. I started the survey with a short introduction which tells students about my EE topic, its aim, the 4 categories of activities and the normal situation. Realizing that our time preferences and management is highly variable, it is essential to set a normal situation as a reference point. Another important point to note is the hypothetical situation of students staying all the time in LPC, or else time can be allocated to traveling, shopping or entertainment purposes. Questions have been ordered in the sense that similar ones are grouped together, thus avoiding repeated instructions and making the questionnaire easier to answer. Simpler questions are positioned first to build rapport with the interviewees, while open-ended questions are left at the end so people will be more willing to answer them. The Survey
Dear LPC Students, Thank you for taking the time to come here! I am most grateful for your help and I would appreciate it very much if you would complete this survey. As you have read from the email, I am working on an Economics EE entitled: What is the optimum use of time spent on academics, ECAs, socializing and sleeping? In this essay, I aim to : - uncover the difficulties of time management faced by fellow LPC students, - interpret our time schedules in terms of Economics, - try to apply Economics theories to improve our time management Throughout this survey, I shall ask questions that relate to your time management and satisfaction levels in four fields: Academics, Quan Cais, Socializing and Sleeping. It is important to note that all time management questions are based on a normal situation, i.e.: - There IS homework, possibly 2 pieces of work to meet at the end of the week - There is NOT a test 'tomorrow'
48

Survey Design, Questionnaire Design Tips http://www.surveysystem.com/sdesign.htm (accessed 4/6/2006)

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

- This is a normal school day in which you have lessons and Quan Cais - You stay in LPC campus the whole time Satisfaction levels and preferences, however, can be based on your personal experience. There will also be open-ended questions and I would really appreciate it if you can give me more insights into the topic. I shall be happy to receive any comments and improve the survey should any criticism apply! Thank you once again and please bear with me through this survey!

1) How many hours would you distribute to each of the following each day? * Taking out class hours and meal times, the total time available is 17 hours *Academics (inc. Doing homework, revising and other schoolwork) *Quan Cais (inc. campus support, action, service, creativity and planning time) *Socializing (inc. chatting, watching movies together, etc.) *Sleeping 2) Which one do you like more, work or leisure? *Work refers to academics and Quan Cais, Leisure refers to socializing and sleeping

Work Leisure No preference

3) Which one do you like more, academics or Quan Cais?

Academics Quan Cais No preference

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Economics Extended Essay 4) Which one do you like more, socializing or sleeping?

Fung Yue Kwong, Ray Candidate number: 000638036

Socializing Sleeping No Preference 5) What is your level of satisfaction in each continuous hour of Academics? e.g. continuously working on a chemistry lab for 4 hours *The following instructions applying to the next 3 questions as well: *Rated on a scale of 0-100, with intervals of 10 *Continuously performing academic activity means, e.g. revising continuously for 3 hours. The level of satisfaction may drop with each continuous hour due to fatigue, boredom, loss of concentration or hunger. Please consider this question in a hypothetical situation and rate according to your own experience. *Level of satisfaction means the satisfaction gained due to various reasons, e.g. Happiness, Experience, Friendship, Good academic performance, Good entries for future resume, Renewal of mind and body *Example: (in the case of academics) Hour of activity Level of Satisfaction (reasons for your reference) First Hour-------70 (since I learn a lot from revising) Second Hour----60 (since I still gain a lot by reviewing previous concepts) Third Hour------40 (since my concentration is rapidly dropping, I gain less from revising) Fourth Hour-----20 (since I have no more interest in studying, I only want to play)

*First Hour *Second Hour *Third Hour *Fourth Hour 6) What is your level of satisfaction in each continuous hour of Quan Cai? e.g. continuously doing service in Pinehill for 4 hours

*First Hour *Second Hour *Third Hour *Fourth Hour

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

7) What is your level of satisfaction in each continuous hour of socializing? e.g. Chatting with your friends continuously for 4 hours

*First Hour *Second Hour *Third Hour *Fourth Hour 8) What is your level of satisfaction in each continuous hour of Sleep? e.g. continuously sleeping for 4 hours

*First Hour *Second Hour *Third Hour *Fourth Hour 9) What difficulties do you encounter in managing time between the 4 fields: Academics, Quan Cais, Socializing and Sleeping? What do you feel wrong about your time planning? 10) What do you want to change about your time management? What improvements can you make to optimize the use of time? 11) Personal Correspondence (Optional) What do you think about "the optimum use of time spent on academics, ECAs, socializing and sleeping"? Any comments about this survey? Your name Your nationality (for statistical purposes) Would you like to receive a copy of my finished EE? Your email address

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Appendix 2 Results, charts and comments from questionnaire Foreword There was an astounding 92 replies, not to mention that a lot of them included detailed answers to aid my EE! Prior to the real survey, I carried out a pilot survey and comments received generally pointed towards the wording of questions. Preference was a vague word, therefore I substituted it with like or dislike. Students also complained about the satisfaction questions for socializing and sleeping, either because its impossible to measure or satisfaction just never falls. This shows that students without Economics concepts might be confused by total utility and marginal utility. In addition, satisfaction depended on many variables, therefore students found it challenging to answer this type of questions. The number of available hours was not justified either due to possible free blocks49 that increase free time. Obscurity was also an issue, I should had stated explicitly that names shall not be publicized. The length of the survey was criticized, while excessive instructions were unnecessary to some students. Results

49

Lesson blocks that are not occupied by any subject

27

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

The results given here have been calculated and the range of answers will be provided for reference: (all numerical data is corrected to 1 decimal places for clarity)
1) How many hours would you distribute to each of the following each day?

Activity Academics ECAs Socializing Sleeping

Average hours distributed 3.5 2.9 3.8 6.5

Maximum 8 6.5 9 10

Minimum 0 0 1 1

*Total hours do not equate to 17 hours due to statistical errors.

Average tim allocation e Academ ics 21% Sleeping 39% ECAs 17%

Socializing 23%

2) Which one do you like more, work or leisure?

Activity Responses Percentage (%)

Work 7 7.6

Leisure 62 67.4

No preference 23 25

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Preference between work and leisure No preference 25% Work 8%

Leisure 67%
3) Which one do you like more, academics or Quan Cais?

Activity Responses Percentage (%)

Academics 15 16.3

ECAs 59 64.1
Academ ics 16%

No preference 18 19.6

Preference between academ and ECAs ics No preference 20%

ECAs 64%
4) Which one do you like more, socializing or sleeping?

Activity Responses Percentage (%)

Socializing 53 57.6

Sleeping 25 27.2

No preference 14 15.2

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Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Preference between socializing and sleeping No preference 15%

Sleeping 27%

Socializing 58%

5) What is your level of satisfaction in each continuous hour of Academics? Hour 1 (average) 2 (average) 3 (average) 4 (average) Average of 4 hours Satisfaction 62.8 64.2 46.9 28.4 50.6 (marginal utility)

6) What is your level of satisfaction in each continuous hour of Quan Cai? Hour 1 (average) 2 (average) 3 (average) 4 (average) Average of 4 hours Satisfaction 77.5 70.8 56.5 44.7 62.4 (marginal utility) 7) What is your level of satisfaction in each continuous hour of socializing? Hour 1 (average) 2 (average) 3 (average) 4 (average) Average of 4 hours Satisfaction 82.1 77.7 68.1 58.9 71.7 (marginal utility) 8) What is your level of satisfaction in each continuous hour of Sleep? Hour 1 (average) 2 (average) 3 (average) 4 (average) Average of 4 hours Satisfaction 79.4 93.4 86.1 85.6 86.1 (marginal utility)

30

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

Com parison of m arginal utilities of different activities 100 Average m arginal utility out of 100 90 80 70 60 50 40 30 20 10 0 Academ ics ECAs Activity Socializing Sleeping 50.6 62.4 71.7 86.1

9) What difficulties do you encounter in managing time between the 4 fields: Academics, Quan Cais, Socializing and Sleeping? What do you feel wrong about your time planning?

Summary: Sleeping is seriously deficient (because time is taken up by Quan Cais and socializing), leading to below-average academic performance. Sleeping is considered as something that can be forgone for other activities sake Too much socializing, since environment offers many interesting people; it is also against the norm to only study but not socializing, students prefer seeing friends to academics (peer pressure) Too many unexpected distractions, therefore work is constantly procrastinated Lack of priorities, scheduling and self-control, which leads to inadequate time for certain activities. Socializing may take a full night, while piled up work is finished last-minute, sacrificing sleep Vicious cycle: spend too much time on socializing and Quan Cais not enough time for academicsprocrastinationlack of sleepnot enough energyprocrastination, socialize instead of academics 10) What do you want to change about your time management? What improvements can you make to optimize the use of time? Summary: Review time-use, eliminate time used in inefficient areas and increase time for useful areas 31

Economics Extended Essay

Fung Yue Kwong, Ray Candidate number: 000638036

More time on sleeping to raise efficiency in other areas Spend less, but effective time on academics (not at night, but during the day), so time can be allocated to other areas Be self-disciplined and follow a plan/ schedule Concentrate and raise efficiency when working Less socializing Put off time for studying everyday Make use of short time periods free blocks, time between lunch and ECA, time before check-in

What do you think about "the optimum use of time spent on academics, ECAs, socializing and sleeping"?

Healthy balance between the 4 activities, when everything is done to a reasonable amount Spend time in your way, depends on personal choice Reduce quantity, improve quality of time by separating activities distinctively (high concentration, continuous activity); or alternatively break up work into sections to avoid inundation *Total time is not important, the quality is important, e.g. sleeping that is scattered throughout the day is of low quality Fixed time of sleep, variable academic or ECA hours till necessary, socialize the remaining time Strong determination, strict adherence to time schedules

32