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 horizontal intercept of his time allocation budget line is:
A) $8.
B) $640.
C) 40 hours.
D) 80 hours.

Question

Quizplus · Accepted Answer

The horizontal intercept represents the maximum hours of leisure, which is 80 hours, as Javon can allocate all his time to leisure without working.

Javon Has 80 Hours Per Week to Allocate Between Labor