Consider the Time Allocation Budget Line for Priya

question 339

Multiple Choice

Consider the time allocation budget line for Priya. Put hours of leisure on the horizontal axis and income on the vertical axis. If Priya can allocate 100 hours per week to either leisure or work and her wage per hour is $18, then the vertical intercept is _____ and the slope of the time allocation budget line is _____.

• A) $180; 18
• B) $1,800; 18
• C) $1,800; -18
• D) $720; 18

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Definitions:

Money

A medium of exchange that is widely accepted in transactions for goods and services and the repayment of debts.

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculating the ratio of the present value of future cash flows to the initial investment cost.

Mutually Exclusive

Decision scenarios or events that cannot happen simultaneously; choosing one option excludes the possibility of selecting the other.