Multiple Choice
Susan's utility function is U(x, y) = (x + y) R2, where x and y are the quantities of goods X and Y that she consumes and R is the number of hours of leisure that she has per day. Good X costs 4 dollars per unit and good Y costs 2 dollars per unit. Her wage rate is 8 dollars per hour and she has 15 hours per day to allocate between labor and leisure. She will
A) consume equal amounts of goods X and Y.
B) consume 10 units of good X.
C) consume 20 units of good Y.
D) work 10 hours a day.
E) consume twice as much of good X as of good Y.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Jack has a backward-bending labor supply curve.At
Q17: If a person is a net seller
Q29: Charlie consumes apples and bananas; his utility
Q31: Dudley's utility function for goods and leisure
Q32: Russ Tickman is a dairy farmer. He
Q40: Is it ever possible that if someone
Q47: Heather and Myrtle have the same tastes.Heather
Q52: If a person is a net supplier
Q68: Quincy consumes only uglifruits and bananas.His only
Q69: Lucetta changes light bulbs.She is paid $10