Question

35,36

Exhibit 12.5 Average yearly earnings (thousands) + a 25-34 35-44 45-54 55-64 65+ Age group 35. Refer to Exhibit 12.5, which shows age, education, and pay among workers. Which education level is represented by point B? a. professional degree b. bachelor's degree c. high school diploma d. no high school diploma e. No education level is represented. 36. Abby maximizes utility by allocating her time among leisure, market work, and nonmarket work so that the a. total utility of each is equal. b. average utility of each is equal. c. total utility per hour of each is equal. d. marginal utility per hour of each is equal. e. maximum amount of goods and services can be acquired.

Answer 1

35. Option B

Explanation: With respect to the level of income earned, point B represents bachelor's degree.

36. Option D

Explanation: Utility is maximized when marginal utility per unit of resource is equal.