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:

Fontanelles

Soft spots on a baby's skull where the bones have not yet fused, allowing for growth of the brain and skull.

Cephalocaudal

denotes a pattern of growth in humans where development proceeds from the head downwards through the body, guiding both physical growth and motor skill development.

Proximodistal

A pattern of development where growth starts at the center of the body and moves towards the extremities.

Proximodistal

Describes the pattern of development that proceeds from the center or core of the body outwards towards the extremities.