Dudley, in Problem 15, Has a Utility Function U(C, R)

question 7

Multiple Choice

Dudley, in Problem 15, 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 $15 per day and is paid a wage of $8 per hour, how many hours of leisure will he choose per day?

• A) 5
• B) 6
• C) 7
• D) 9
• E) 8

---

Definitions:

Self-actualization

The fullest development of the self.

Pampered Excessively

The act of indulging someone with extreme and excessive care and attention, often leading to a sense of entitlement or lack of resilience.

Adjusting

The process of modifying or adapting one's behavior or attitude in response to external conditions or internal feedback.

Last-borns

Refers to the youngest child in a family, who may experience different parental expectations, responsibilities, and dynamics compared to their older siblings.