MrCog Has 18 Hours a Day to Divide Between Labor

question 19

Multiple Choice

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 8 dollars of nonlabor income per day and gets a wage rate of 5 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as

• A)5R + C = 98.
• B)R + C/5 = 128.
• C)C = 98 + 5R.
• D)5R + C = 8.
• E)C = 122 + 5R.

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