Question 1

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 34 dollars per day and a wage rate of 17 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Accepted Answer

The answer of Mr.Cog has 18 hours per day to...

Question 2

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 44 dollars per day and a wage rate of 14 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Accepted Answer

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Question 3

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 16 dollars of nonlabor income per day and gets a wage rate of 7 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

Accepted Answer

The budget equation is derived from the total income, which is the sum of nonlabor income and income from labor. Mr. Cog can work up to 18 hours, so his maximum labor income is 18 * 7 = 126 dollars. Adding his nonlabor income of 16 dollars gives a total of 142 dollars. Therefore, the budget equation is 7R + C = 142, where R is leisure hours and C is consumption.

Question 4

Mr.Cog  has 18 hours a day to divide between labor and leisure.If he has 17 dollars of nonlabor income per day and gets a wage rate of 13 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

Accepted Answer

Mr. Cog's total income consists of his nonlabor income plus his income from labor (wage rate times hours worked). Since he has 18 hours a day to divide between labor and leisure, if he works R hours, he has 18-R hours of leisure. His nonlabor income is $17, and his wage rate is $13 per hour. Therefore, his total income (consumption, C) can be expressed as the sum of his nonlabor income and his income from labor, which is $17 + $13R. Since he has 18 hours in total, and if he uses R hours for work, the equation representing his budget constraint is C = 17 + 13R, which matches the format of choice D.

Question 5

Mr.Cog  has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 48 dollars per day and a wage rate of 15 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Accepted Answer

Mr. Cog's total income is the sum of his nonlabor income and his labor income. If he works all 18 hours, his labor income is 18 hours * $15/hour = $270. Adding his nonlabor income of $48, his total income is $318. However, he will choose a combination of labor and leisure that maximizes his utility, not necessarily working all 18 hours. The correct choice is the one that reflects a reasonable balance, which is $159, assuming he works 7.4 hours (7.4 * $15 + $48 = $159).

Question 6

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 38 dollars per day and a wage rate of 9 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Accepted Answer

The answer of Mr.Cog has 18 hours per day to...

Question 7

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

Accepted Answer

The budget equation is derived from the total income, which includes nonlabor income and income from labor. Mr. Cog has 18 hours, and if he works all 18 hours, he earns 5 dollars per hour, totaling 90 dollars. Adding the 8 dollars of nonlabor income gives a total of 98 dollars. Therefore, the budget equation is 5R + C = 98, where R is the hours of leisure and C is consumption.

Question 8

Mr.Cog  has 18 hours a day to divide between labor and leisure.If he has 13 dollars of nonlabor income per day and gets a wage rate of 17 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

Accepted Answer

The budget equation is derived from the total income Mr. Cog can earn, which is his nonlabor income plus the income from working. He can work up to 18 hours, so his maximum labor income is 18 * 17 = 306 dollars. Adding his nonlabor income of 13 dollars gives a total of 319 dollars. Therefore, the budget equation is 17R + C = 319, where R is the hours of leisure and C is the consumption.

Question 9

Mr.Cog  has 18 hours a day to divide between labor and leisure.If he has 9 dollars of nonlabor income per day and gets a wage rate of 15 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

Accepted Answer

The budget equation is derived from the total income Mr. Cog can earn, which is his nonlabor income plus his labor income. He has 18 hours a day, so if he works all 18 hours, he earns 18 * 15 = 270 dollars. Adding his nonlabor income of 9 dollars gives a total of 279 dollars. The equation 15R + C = 279 represents the total income (C) he can spend, where R is the hours of leisure (18 - hours worked).

Question 10

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 40 dollars per day and a wage rate of 6 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Accepted Answer

The answer of Mr.Cog has 18 hours per day to...

Quiz 8: Buying and Selling-Part B

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 34 dollars per day and a wage rate of 17 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 44 dollars per day and a wage rate of 14 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 16 dollars of nonlabor income per day and gets a wage rate of 7 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

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 17 dollars of nonlabor income per day and gets a wage rate of 13 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

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 48 dollars per day and a wage rate of 15 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 38 dollars per day and a wage rate of 9 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

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

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 13 dollars of nonlabor income per day and gets a wage rate of 17 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

Mr.Cog has 18 hours a day to divide between labor and leisure.If he has 9 dollars of nonlabor income per day and gets a wage rate of 15 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

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 40 dollars per day and a wage rate of 6 dollars per hour, he will choose a combination of labor and leisure that allows him to spend