DrJ Has 80 Hours Per Week to Divide Between Work

question 8

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 $50 per week of his labor income is untaxed, but all labor income above $50 is taxed at a rate of 10%.

• A)The slope of Dr.J's budget line is everywhere -4.50.
• B)Dr.J's budget line has a kink where his income is $300 and his leisure is 70 hours.
• C)Dr.J's budget line has no kinks in the part of it that corresponds to a positive labor supply.
• D)Dr.J's budget line has a kink in it at the point where he takes 80 units of leisure.
• E)Dr.J's budget line has a piece that is a horizontal straight line.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing, crucial for reasoning and the guidance of decision-making and behavior.

Atkinson And Shiffrin

Two cognitive psychologists who, in 1968, proposed the multi-store model of memory that outlines three distinct stages: sensory memory, short-term memory, and long-term memory.

Rehearse Information

The act of practicing or mentally reviewing information repeatedly to enhance memory retention.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the five senses.