Javon has 80 hours per week to allocate between labor and leisure. Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis. If Javon's hourly wage is $8, then the vertical intercept of his time allocation budget line is:
A) $8.
B) $640.
C) 40 hours.
D) 80 hours.

Question

Quizplus · Accepted Answer

The vertical intercept represents the maximum income Javon can earn if he allocates all 80 hours to labor. At $8 per hour, this is 80 hours * $8/hour = $640.

Javon Has 80 Hours Per Week to Allocate Between Labor