DrJ Has 80 Hours Per Week to Divide Between Work

question 17

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 $250 per week.Suppose that the first $150 per week of his labor income is untaxed, but all labor income above $150 is taxed at a rate of 70%.

• A)Dr.J's budget line has a kink where his income is $400 and his leisure is 50 hours.
• B)The slope of Dr.J's budget line is everywhere -1.50.
• C)Dr.J's budget line has a kink in it at the point where he takes 60 units of leisure.
• 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:

Generation Gap

The difference in attitudes, behaviors, and values between one generation and another, often leading to misunderstanding or conflict.

Individuation

Refers to the developmental process by which an individual becomes distinct and unique by integrating various aspects of the self.

Argue

To present reasons for or against a thing, typically in a formal manner or structured debate.

Dresses

Garments for women or girls, typically consisting of a skirt with an attached bodice or a matching bodice giving the effect of a one-piece garment.