10. Suppose in our model, lifespans increased due to a productivity in- crease. What would likely happen to hours worked and leisure over the lifetime of a represent ative consumer. (a) Let's consider one of two common ways of implementing this change. Suppose the increase raised both lifespans and the amount of years consumers are healthy enough to work by the same amount, how would that likely affect the measured numbered of hours work by prime aged adults within a given year? What would likely hap- pen to the retirement age? (b) Let's consider the other way to implement it. Suppose the change in lifetimes came about changes in technology that delayed death but did not extend the amount of years consumers are healthy enough to work. What would likely happen to hours worked within a year? What would happen to the retirement age? (c) In the US, the generalized stylized fact is that the actual age of retirement is not increasing. Nor are hours worked per week. Why are both of the above predictions likely off? That is, what is our current model missing?

Then consider an individual with the exact same preferences (same indifference curve map as in the previous question) and skills, but this person happened to have a better connection with a company and is earning a higher wage than the individual in part 'a'. Thus, this person faces budget line BL' below and takes l'hours of leisure (works T - l'hours). C 50 BL l' O Keep leisure the same T Then this individual is offered the same take-it-or-leave-it (TIOLI) cash grant of $g (that must be forgone if this person works at all). What would this individual do (in terms of leisure taken (and labor supplied))? O Take no leisure 151515 O Take more leisure, but not as much at T. ولا O Take all leisure (not work at all) O None of the other options.

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ASAP pls Discuss the possible substitution effect and the income effect of an increase in income on leisure time..

4. The table shows a company's yearly profit beginning in the year 2004. Time Since 2004 4. 8 10 (years) Profit (hundred thousands of dollars) 12.3 11.9 11.7 10.25 9.1 7.0 Use a quadratic regression to predict the company's profits in the 2016. year a. 469000 Ь. 705000 С. 700000 d. 674000 5. Kathy painted a picture and posted it on a social media site. The table shows the number of

Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working g hours and not working at all, whereg> 0. Suppose that dividend income is zero, and that the consumer pays a tax Tif he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment. a Click the icon to view information about the initial model used here. Consumption, C W29-T w,q-T Leisure, I h-g BE a. If the wage rate increases, how does this affect the consumer's hours of work? What does this have to say about what we would observe about the behaviour of actual consumers when wages change? After the wage rate increases, an individual consumer who originally did not work at all V After the wage rate increases, an individual consumer who originally worked q hours V This suggests that if an economy includes many consumers with many different sets preferences (all satisfying the assumptions of the initial model) and the…

Question 2 Analyse the variables depicted in Figure 1 and comment on the movement of the variables over the period, using literature or other valid sources to support your answer. 0.0 26.5 25.4. 253 261 25.0 24.9 30 2.5. 20 15. 10 05 70 NO Fig. 1 Visual of the variables of study LNGOP LNIND LNTNR 10 why 9 00 05 10 15 MN.. UNFO LNCOAL