Dudley Has a Utility Function U(C, R) = C -

question 57

Multiple Choice

Dudley has a utility function U(C, R) = C - (12 - R) ², where R is leisure and C is consumption per day. He has 16 hours per day to divide between work and leisure. If Dudley has a nonlabor income of $20 per day and is paid a wage of $0 per hour, how many hours of leisure will he choose per day?

• A) 9
• B) 10
• C) 11
• D) 13
• E) 12

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Definitions:

Dependence Training

The socialization process by which individuals are taught to rely on others, particularly in cultures that emphasize community over individual achievement.

Independence Training

The process of teaching children to be self-sufficient and capable of making decisions independently.

Collective Living

A lifestyle in which individuals live together in a shared dwelling and resources, often associated with communal values and practices.

Castrated

The act or process of removing the testicles or ovaries of a person or animal, often to control reproduction or influence behavior.