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Business, 16.10.2020 14:01 Learsyguerra26

A worker has two jobs, and they can choose to work any number of hours in a day on each job (up to the upper limit, if any), but can only work on one job at a time. The first job pays $10 per hour and has an upper limit of 6 hours per day. The second job pays $6 per hour and has no upper limit (for example, fixed-contract online freelance work). The worker will always choose the first job if they can. Consider their budget constraint with the amount of daily leisure time on the horizontal axis (from 0 to 24 hours) and their consumption expenditure on the vertical axis (which equals their daily income). Based on this information, which of the following is correct? a. The workers budget constraint is kinked at 6 hours of free time.
b. The worker will never choose to consume exactly 18 hours of free time.
c. The slope of the budget constraint is -6 when the hours of free time is small, and 10 when the hours of free time is large.
d. For the choice of 8 hours of free time, the maximum expenditure for the day is 96

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