John Is Trying to Decide How to Divide His Time

question 100

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.  
Should John spend a third hour cleaning windows?

• A)Yes, because he would earn $28.
• B)Yes, because the additional amount he would earn is $14, which is greater than his opportunity cost of $7.
• C)No, because the additional amount he would earn is $6, which is less than his opportunity cost of $7.
• D)Yes, because the additional amount he would earn is $6, which is better than earning nothing.

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Definitions:

Differentiation

The process of distinguishing or becoming distinct, often used in the context of individual development or in the specialization of cells and tissues.

Psychic Energy

A term used in psychoanalytic theory to describe the force or drive behind human behavior, thoughts, and feelings.

Opposites

Elements or ideas that are diametrically different from each other, often used to highlight contrast or balance.

Equivalence

The condition of being equal in value, function, meaning, or status.