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Lisa Is Currently Not Employed

Question 106

Multiple Choice

Lisa is currently not employed. She places a value of $12 an hour on her time in nonmarket activities. If Lisa is offered a job paying $17 an hour,


A) she should supply 0 hours in the labor market and allocate all of her time to nonmarket activities.
B) she should supply a positive number of hours in the labor market and allocate no time to nonmarket activities.
C) she should supply a positive number of hours in the labor market and to nonmarket activities.
D) she is indifferent between supplying hours to the labor market and using her time in nonmarket activities.

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