Javon Has 80 Hours Per Week to Allocate Between Labor

question 330

Multiple Choice

Javon has 80 hours per week to allocate between labor and leisure. Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis. If Javon's hourly wage is $8, then the opportunity cost of an hour of leisure is:

• A) $8.
• B) $10.
• C) $640.
• D) $800.

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Definitions:

Fixed Costs

For expenses like rent, salaries, and insurance premiums, their amounts do not fluctuate with the levels of output or sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

EPS

Earnings Per Share, a financial metric that divides a company's profit by the number of its outstanding shares to indicate the company's profitability on a per-share basis.

Capital

Financial resources or assets owned by a business or individual that are useful in furthering development and generating income.