John Is Trying to Decide How to Divide His Time

question 140

Multiple Choice

John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.  
John's benefit from his first hour cleaning windows is:

• A)$14
• B)$18
• C)$7
• D)$2.

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Definitions:

Current Population Survey

A monthly survey of households conducted by the Bureau of Census for the Bureau of Labor Statistics to gather employment and unemployment data.

Adult Population

The segment of the population that is considered to be of working age and is often analyzed in economic studies for labor force and unemployment statistics.

Unemployed Category

A classification for individuals in the labor force who are without a job but are available for and seeking work.

Employed Category

A classification used in labor statistics to denote individuals who are currently working for payment, in any job or business.