DrJ Has 80 Hours Per Week to Divide Between Work

question 29

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 $150 per week.Suppose that the first $100 per week of his labor income is untaxed, but all labor income above $100 is taxed at a rate of 70%.

• A)Dr.J's budget line has no kinks in the part of it that corresponds to a positive labor supply.
• 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 70 units of leisure.
• D)Dr.J's budget line has a kink where his income is $250 and his leisure is 60 hours.
• E)Dr.J's budget line has a piece that is a horizontal straight line.

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Definitions:

Grandmother Hypotheses

A theory suggesting the evolutionary advantage of post-reproductive lifespan, where grandmothers aid in the survival of their grandchildren.

Menopause

The natural cessation of menstruation that typically occurs in women in middle to late adulthood, marking the end of reproductive capacity.

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A species of fly, commonly used as a model organism in genetic, biochemical, and evolutionary biology research.

Genetic Variation

The diversity in gene frequencies within a population, which is the raw material for evolution through natural selection.