Multiple Choice
Scenario 21-2
Lawrence has recently graduated from college with a degree in journalism and economics. He has decided to pursue a career as a freelance journalist writing for business newspapers and magazines. Lawrence is typically awake for 112 hours each week (he sleeps an average of 8 hours each day) . For each hour Lawrence spends writing, he can earn $75. Lawrence is such a good writer that he can get paid for as many hours of writing as he chooses to work.
-Refer to Scenario 21-2. If Lawrence's wage increases to $90 per hour of writing, which of the following points would fall on his budget constraint?
A) 75 hours of leisure, $2,775 of consumption
B) 80 hours of leisure, $2,400 of consumption
C) 85 hours of leisure, $2,430 of consumption
D) 90 hours of leisure, $1,650 of consumption
Correct Answer:

Verified
Correct Answer:
Verified
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