John,a Bachelor,after Reading a Book on Homemaking,suddenly Becomes Twice as Productive

question 1

Multiple Choice

John,a bachelor,after reading a book on homemaking,suddenly becomes twice as productive in doing household chores.This will likely make his indifference curves (between income on the vertical axis and household time on the horizontal axis) become

• A) flatter.
• B) steeper.
• C) more bowed in.
• D) less bowed in.

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Definitions:

Variable

A characteristic, number, or quantity that increases or decreases over time, or takes different values in different situations.

Fixed

Costs or expenses that do not change with the level of production or sales activity, such as rent or salaries.

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Short Term

A time period typically lasting less than one year, used to evaluate financial performance, investments, and objectives that are expected to be achieved within a brief timeframe.