MrCog Has 18 Hours Per Day to Divide Between Labor

question 5

Multiple Choice

Mr.Cog has 18 hours per day to divide between labor and leisure.His utility function is U(C, R) = CR, where C is dollars per year spent on consumption and R is hours of leisure.If he has a nonlabor income of 40 dollars per day and a wage rate of 8 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

• A)184 dollars per day on consumption.
• B)82 dollars per day on consumption.
• C)112 dollars per day on consumption.
• D)92 dollars per day on consumption.
• E)138 dollars per day on consumption.

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Definitions:

Standard Deviation

A metric that quantifies how spread out a dataset is around its average, determined by taking the square root of the variance.

Mean Score

The arithmetic average of a set of numerical values, calculated by adding all the scores together and dividing by the number of scores.

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The ratio or percentage of employees fitting a specific criteria within the total workforce.