MrCog Has 18 Hours Per Day to Divide Between Labor

question 21

Multiple Choice

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 38 dollars per day and a wage rate of 9 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

• A)90 dollars per day on consumption.
• B)200 dollars per day on consumption.
• C)100 dollars per day on consumption.
• D)119 dollars per day on consumption.
• E)150 dollars per day on consumption.

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Definitions:

Goods and Services

Products and activities that fulfill the needs or desires of consumers, with goods being tangible objects and services being intangible activities.

Factors of Production

The inputs used to produce goods and services, typically classified into four main categories: land, labor, capital, and entrepreneurship.

Money

A medium of exchange that facilitates trade, serves as a unit of account, a store of value, and can be in the form of coins, notes, or electronic.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than others.