Roxanne and Eileen Live in an Apartment Building with a Laundry

question 53

Multiple Choice

Roxanne and Eileen live in an apartment building with a laundry room in the basement.Roxanne does her laundry at home, spending $4 and 5 hours per week.Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry.On the basis of the information given, which one of the following must be true?

• A)Roxanne earns more labor income than Eileen.
• B)Eileen earns more total income than Roxanne.
• C)Roxanne enjoys doing laundry; Eileen does not.
• D)Eileen has less laundry than Roxanne.
• E)Eileen and Roxanne attach different utilities to time spent doing laundry.

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Definitions:

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services.

Usury Laws

Regulations governing the maximum interest rates that can be charged on loans, intended to protect consumers from excessively high rates.

Usury Law

Legislation that sets the maximum interest rates that can be charged on loans, intended to protect consumers from excessively high rates.

Quantity of Money

The total amount of money (currency, coins, and checking deposits) in circulation within an economy.