A consumer has a utility function over consumption and leisure given by U(c, /) = In(c) + 4 In(/). The consumer is currently working 6 hours per day, is paid $15 per hour and the consumption good costs $5 per unit. Given this information, the consumer could increase their utility by a. They are already at the optimal working hours b. We cannot determine whether they should be working more or less with the information given c. Working less O d. Working more Which of the following explanations for unemployment is inconsistent with the classical theory? a. Firms in a unionized industry cut workers as the union negotiates a higher wage b. A worker refuses to accept a job because they would rather wait for a better opportunity c. Workers choose to work fewer hours as unemployment benefits are generous d. Firms hold off on hiring new workers because they are worried that demand for their products will be low
A consumer has a utility function over consumption and leisure given by U(c, /) = In(c) + 4 In(/). The consumer is currently working 6 hours per day, is paid $15 per hour and the consumption good costs $5 per unit. Given this information, the consumer could increase their utility by a. They are already at the optimal working hours b. We cannot determine whether they should be working more or less with the information given c. Working less O d. Working more Which of the following explanations for unemployment is inconsistent with the classical theory? a. Firms in a unionized industry cut workers as the union negotiates a higher wage b. A worker refuses to accept a job because they would rather wait for a better opportunity c. Workers choose to work fewer hours as unemployment benefits are generous d. Firms hold off on hiring new workers because they are worried that demand for their products will be low
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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