Author Question: Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does ... (Read 112 times)

altibaby · **on:** Jul 1, 2018

Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does her laundry at home, spending 4 and 5 hours per week. Eileen sends her laundry out, spending 20 and 15 minutes per week transporting the laundry. On the basis of the information given, which one of the following must be true?
a. Roxanne earns more labor income than Eileen.
b. Eileen earns more total income than Roxanne.
c. Roxanne enjoys doing laundry; Eileen does not.
d. Eileen has less laundry than Roxanne.
e. Eileen and Roxanne attach different utilities to time spent doing laundry.

Question 2

Economists generally assume that
a. firms act to maximize the dividends paid to stockholders
b. households act to maximize their wealth
c. households act to maximize utility
d. firms act to maximize revenue
e. both households and firms act to minimize expenditures