Wendy and Mac Work in Fast-Food Restaurants

question 43

Multiple Choice

Wendy and Mac work in fast-food restaurants.Wendy is paid $4 an hour for the first 40 hours a week that she works and $6 an hour for every hour beyond 40 hours per week.Mac gets $5 an hour no matter how many hours he works.Each has 110 hours per week to allocate between work and leisure.Each has a utility function U = cr, where c is expenditure per week on consumption and r is hours of leisure per week.Each can choose the number of hours to work.If Wendy works W hours and Mac works M hours, then

• A)W = 1.5M.
• B)W < M.
• C)W 2 M = 6.66.
• D)W 2 M = 10.
• E)None of the above.

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Definitions:

Dream Analysis

A therapeutic technique used in psychoanalysis to interpret the latent content of dreams, aiming to uncover unconscious thoughts and desires.

Childhood Experiences

Events, interactions, and moments occurring during one's childhood that can significantly influence an individual's development and personality.

Sigmund Freud

The founder of psychoanalysis, this Austrian neurologist introduced a new clinical technique aimed at resolving psychological disorders by facilitating dialogue between a patient and a psychoanalyst.

Therapy

The treatment of mental or psychological disorders by psychological means.