DrJ Has 80 Hours Per Week to Divide Between Work

question 28

Multiple Choice

Dr.J has 80 hours per week to divide between work and leisure.His wage rate if $5 per hour.Dr.J receives a lump sum payment of $100 per week.Suppose that the first $50 per week of his labor income is untaxed, but all labor income above $50 is taxed at a rate of 70%.

• A)Dr.J's budget line has a kink in it at the point where he takes 80 units of leisure.
• B)Dr.J's budget line has a kink where his income is $150 and his leisure is 70 hours.
• C)The slope of Dr.J's budget line is everywhere -1.50.
• D)Dr.J's budget line has no kinks in the part of it that corresponds to a positive labor supply.
• E)Dr.J's budget line has a piece that is a horizontal straight line.

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Definitions:

Culture

The collective intellectual achievements, arts, and social institutions of a particular nation or social group.

Letter Of Refusal

A formal written communication to decline an offer, invitation, application, or request, typically providing reasons for the refusal.

Available Choices

The range of options or alternatives that an individual can select from at any given time.

Negative Message

Communication that conveys a refusal, rejection, or unfavorable information, often requiring careful wording to maintain goodwill.