Gladys Goodhands is an insurance agent. She must choose one and only one of two possible alternative jobs. She can either work for a large national insurance company for which she must work exactly 40 hours a week and will receive a salary of S dollars per week, or she can work as an independent insurance agent, in which case she can work exactly as many hours per week as she wishes and will earn w dollars for every hour that she works. Gladys satisfies the weak axiom of revealed preference and she cares only about how much money she makes and about how much leisure time she has.
A) If, she will prefer to work for the large national insurance company.
B) Ifand she decides to work independently, then it must be that she chooses to work more than 40 hours a week.
C) Ifand she decides to work independently, then it must be that she chooses to work less than 40 hours a week.
D) If, she will be indifferent between working for the large insurance company and working independently.
E) None of the above.
Correct Answer:
Verified
Q29: Heather and Myrtle have the same tastes.Heather
Q38: Rhoda takes a job with a construction
Q40: Jackie's net demands for x and y
Q42: Mr. Cog has 18 hours per day
Q42: Henri is paid $9 an hour for
Q43: Quincy consumes only uglifruits and bananas.His only
Q46: Mario consumes eggplants and tomatoes in the
Q47: Dr. Johnson receives a lump sum payment
Q48: Susan's utility function is U(x, y) =
Q56: George Goodhands is a life insurance agent.He
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents