Scenario 21-2 Lawrence Has Recently Graduated from College with a Degree in Degree

question 132

Multiple Choice

Scenario 21-2
Lawrence has recently graduated from college with a degree in journalism and economics. He has decided to pursue a career as a freelance journalist writing for business newspapers and magazines. Lawrence is typically awake for 112 hours each week (he sleeps an average of 8 hours each day) . For each hour Lawrence spends writing, he can earn $75. Lawrence is such a good writer that he can get paid for as many hours of writing as he chooses to work.
-Refer to Scenario 21-2. If Lawrence's wage increases to $90 per hour of writing, which of the following points would fall on his budget constraint?

• A)75 hours of leisure, $2,775 of consumption
• B)80 hours of leisure, $2,400 of consumption
• C)85 hours of leisure, $2,430 of consumption
• D)90 hours of leisure, $1,650 of consumption

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Definitions:

Allison

Allison is known for creating automatic transmissions for commercial vehicles, offering products that enhance vehicle performance and control.

Planetary Gearset

A system of gears consisting of a central 'sun' gear, several 'planet' gears, and a 'ring' gear, used to provide various gear ratios in transmissions.

Carrier

In automotive contexts, a component that holds the differential gear assembly in vehicles, allowing the transmission of power to the drive axles.

Input Member

A component in a mechanical system that receives power from an external source and transmits it to other parts of the system.