Scenario: This Problem Applies the Principle of Optimization Covered in Chapter

question 122

Multiple Choice

Scenario: This problem applies the principle of optimization covered in Chapter 5 to the problem of choosing how many hours to work. Paul has to decide how many hours to work per day. His boss is willing to give Paul whatever hours Paul wants up to 8 hours. All else being equal, he would rather not work, that is, Paul has positive marginal benefit from each hour of leisure. But he is an avid collector of presidential campaign buttons. The more leisure he takes, the fewer buttons he can afford. So Paul faces a trade-off between leisure and buttons. Each button costs $1.00. The table below shows Paul's marginal benefits from leisure (MBlₑᵢsᵤᵣₑ) and buttons (MBbᵤttₒn) .

-Refer to the scenario above.If the hourly wage is $1.00,how many hours would Paul choose to work? How many buttons would he buy?

• A) 6 hours; 6 buttons
• B) 3 hours; 3 buttons
• C) 2 hours; 2 buttons
• D) 0 hours; 0 buttons

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Definitions:

Oppositional Defiant Disorder

A behavioral condition in children marked by defiant, disobedient, and hostile behaviors towards authority figures.

Shoplifting

The act of stealing goods from a store by concealing them without paying.

Conduct Disorder

A serious behavioral and emotional disorder in children and adolescents characterized by disruptive, violent, and antisocial behavior.

Child Abuse

Physical, sexual, emotional mistreatment, or neglect of a child under 18 by a parent, caregiver, or another person.