Consider a two-period human capital investment framework. Suppose that the link between the amount of investment into schooling (we denote this amount by s) and earnings, w, is governed by w (s) = 9 · si . If the interest rate is 10% (r = 0.10), what is the optimal level of s? Calculate and enter it in the box below. Round your answer to two decimal spaces. Note: the first derivative of a function f (x) = a · x³ is f' (x) = ab · x³-1 . Consider a two-period human capital investment framework. Suppose a worker's earnings are governed by w(s) = 8-In(1 + s) andr = 0.5. Given the unemployment rate with 7 of 16 workers unemployed, what is the optimal level of schooling investment? Calculate and enter it in the box below. Round your answer to two decimal spaces. Note: the first derivative of a function f (x) = a · In(1 +æ) is ƒ' (æ) = a a :

Consider a two-period human capital investment framework. Suppose that the link between the amount of investment into schooling (we denote this amount by s) and earnings, w, is governed by w (s) = 9 · si . If the interest rate is 10% (r = 0.10), what is the optimal level of s? Calculate and enter it in the box below. Round your answer to two decimal spaces. Note: the first derivative of a function f (x) = a · x³ is f' (x) = ab · x³-1 . Consider a two-period human capital investment framework. Suppose a worker's earnings are governed by w(s) = 8-In(1 + s) andr = 0.5. Given the unemployment rate with 7 of 16 workers unemployed, what is the optimal level of schooling investment? Calculate and enter it in the box below. Round your answer to two decimal spaces. Note: the first derivative of a function f (x) = a · In(1 +æ) is ƒ' (æ) = a a :

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Imagine a consumer - worker who has a total time endowment of T = 100 hours per week. He/She can use these hours for work or for leisure. All the money that he/she will gain from the work will use for consumption. The Utility Function is U=C1/2 R¹/2 where C is consumption of consumer goods and R is consumption of leisure. The wage rate is £20 per hour, and the price of consumer goods is £1. Hours of labour supplied are denoted by L, where L = T - R. Find the utility-maximising levels of consumption and leisure. How much labour does the consumer - worker's supply?
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