Mr Cog Has 18 Hours Per Day to Divide Between

question 70

Multiple Choice

Mr. Cog has 18 hours per day to divide between labor and leisure. His utility function is U(C, R) = CR, where C is dollars per year spent on consumption and R is hours of leisure. If he has 5 dollars of nonlabor income per day and gets a wage rate of 11 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as

• A) C = 203 + 11R.
• B) R += 269.
• C) 11R + C = 5.
• D) 11R + C = 203.
• E) C = 218 + 11R.

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Definitions:

Assimilation

The cognitive process of integrating new information into existing cognitive schemas, perceptions, and understanding.

Piaget's Concept

Refers to the theories and ideas proposed by Jean Piaget concerning the cognitive development stages children go through as they mature.

Infant

A very young child or baby, typically under one year of age, who is in the earliest stage of human development.

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.