You Have Two Options for How to Spend the Afternoon

question 53

Multiple Choice

You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?

• A)$8
• B)$12
• C)$22
• D)$57

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Definitions:

Labor Efficiency Variance

The difference between the actual labor hours worked and the standard labor hours expected for the level of production achieved, multiplied by the standard labor rate.

September

The Gregorian calendar's ninth month.

Materials Price Variance

Materials Price Variance is the difference between the actual cost of materials and the standard cost, indicating how much more or less was paid for materials than expected.

September

The ninth month of the Julian and Gregorian calendars, known for marking the transition from summer to autumn in the Northern Hemisphere.