Diana Is a Personal Trainer Whose Client Charles Pays $80

question 361

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. Before the tax, what is the total surplus?

• A) $25
• B) $20
• C) $5
• D) $0

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Definitions:

Mnemonic Method

A technique used to improve memory by associating new information with known patterns, images, phrases, or ideas.

Visualizing

The process of forming mental visual images.

Repeating

The act of saying or doing something again, often to practice, reinforce learning, or ensure comprehension.

Ambiguous Figures

Images or objects that can be perceived in more than one way, leading to different interpretations.