John Is Trying to Decide How to Divide His Time

question 67

Multiple Choice

John is trying to decide how to divide his time between his job as a stocker in the local grocery store,which pays $7 per hour for as many hours as he chooses to work,and cleaning windows for the businesses downtown.He makes $2 for every window he cleans.John is indifferent between the two tasks,and the number of windows he can clean depends on how many hours he spends cleaning in a day,as shown in the table below: $$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Cleaning time } \\\text { (hr/day) }\end{array} & \begin{array} { l } \text { Total numbers of } \\\text { windows cleaned }\end{array} \\\hline 0 & 0 \\\hline 1 & 7 \\\hline 2 & 11 \\\hline 3 & 14 \\\hline 4 & 16 \\\hline 5 & 17 \\\hline\end{array}$$
Refer to the information above.If we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis,we will have John's _______ curve for window-cleaning services.

• A) production possibilities
• B) supply
• C) benefit
• D) demand

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Definitions:

Free Ticket

A complimentary pass or voucher granting the holder access to an event, activity, or service at no cost.

Opportunity Cost

The cost of the next best alternative that is forgone when making a decision.

Economic Concept

A principle, theory, or idea that forms the basis for economic analysis and decision-making.

Marginal Analysis

An approach in economics that involves examining the consequences of adding to or subtracting from the current situation.