Use the Following to Answer Questions

question 40

Multiple Choice

Use the following to answer questions:
Figure: Rita's Time Allocation Budget Line
-(Figure: Rita's Time Allocation Budget Line) Look at the figure Rita's Time Allocation Budget Line. It is based on 80 hours available for labor and leisure. If her hourly wage doubles, the new time allocation budget line will have a point at _____ hours of leisure and _____ in income.

• A) 30; $1,000
• B) 40; $400
• C) 50; $700
• D) 60; $280

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Definitions:

Monthly Salary

Regular payment from an employer to an employee, typically spread over a month, for performing agreed-upon professional tasks.

Commission

A fee or percentage of a transaction value paid to agents or employees for conducting a piece of business or a service.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Commission Only

A payment model where compensation is based solely on the amount of sales or transactions generated, with no base salary.