Javon Has 80 Hours Per Week to Allocate Between Labour

question 12

Multiple Choice

Javon has 80 hours per week to allocate between labour and leisure.Javon's wage is $8 per hour.Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis.According to the optimal time allocation rule,Javon should allocate his time such that the marginal utility of an additional hour of leisure is:

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

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Definitions:

Human Capital Theory

An economic perspective that regards individuals' skills, knowledge, and experience as valuable resources that enhance productivity.

Economic System

The organized way a society allocates resources, produces goods and services, and distributes wealth among its members.

Wage Differences

The disparities in income received by individuals for their labor, often influenced by factors like occupation, education, experience, and gender.

Functionalist Theory

A theoretical perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.