Javon Has 80 Hours Per Week to Allocate Between Labor

question 49

Multiple Choice

Javon has 80 hours per week to allocate between labor and leisure. Javon's wage is $8 per hour. Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis. According to the optimal time allocation rule, Javon should allocate his time such that the marginal utility of an additional hour of leisure is:

• A) $8.
• B) $10.
• C) $640.
• D) $800.

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Definitions:

Assignable

A quality of a contract or right that allows it to be transferred from one party to another.

Third Party Rights

Rights that are granted to individuals or entities who are not a direct party to a contract or legal agreement but are affected by its provisions.

Delegation

The act of transferring to another person the authority to perform a particular task or function.

Assignment

The transfer of rights, duties, or interests from one party to another.