Use the Following to Answer Questions

question 207

Multiple Choice

Use the following to answer questions:
Figure: Davina's Labor Supply Choice
-(Figure: Davina's Labor Supply Choice) The figure Davina's Labor Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labor and leisure; it also shows two of her indifference curves for income and leisure. When Davina earns $15 per hour, she works _____ hours and enjoys _____ hours of leisure.

• A) 20; 60
• B) 30; 50
• C) 40; 40
• D) 50; 30

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Definitions:

Utilities

Services provided to the public, including electricity, gas, water, and sewage services, typically requiring payment.

Generates Revenues

Activities or assets within an organization that contribute to earning income from sales of goods or services.

Incurs Costs

To have expenses or to bear the expense of an action or operation.

Ratio Scale

A quantitative scale where there is a true zero and equal intervals between neighboring points, allowing for the measurement of absolute quantities and the comparison of ratios.