MrCog Has 18 Hours Per Day to Divide Between Labor

question 24

Multiple Choice

Mr.Cog has 18 hours per day to divide between labor and leisure.His utility function is U(C, R) = CR, where C is dollars per year spent on consumption and R is hours of leisure.If he has 5 dollars of nonlabor income per day and gets a wage rate of 11 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as

• A)C = 203 + 11R.
• B)R + C/11 = 269.
• C)11R + C = 5.
• D)11R + C = 203.
• E)C = 218 + 11R.

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Definitions:

Mental Ability

The capacity to perform cognitive tasks, understand complex ideas, adapt effectively to the environment, and learn from experiences.

Overall Happiness

A holistic measure of an individual's contentment and well-being, considering various aspects of life satisfaction.

Self-Motivation

The ability to drive oneself to take initiative and action to pursue goals without external prompting or reinforcement.

Recognizing

The act of identifying something or someone as already known or familiar; perceiving the significance or understanding the nature of something.