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

question 6

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 $35 per day and is paid a wage of $0 per hour, how many hours of leisure will he choose per day?

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

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Definitions:

Modality Principle

A guideline in multimedia learning that suggests people learn better from words and pictures when the words are spoken rather than presented in text form.

Audio Technology

The use and application of equipment and software for recording, reproducing, and manipulating sound.

On-screen Text

Text displayed on a computer or television screen used for conveying information or instructions.

Modality Principle

A guideline in multimedia learning suggesting that people learn better when information is presented in both verbal and visual formats rather than in verbal format alone.