A consumer has a utility function over consumption and leisure given by U(c, /) = In(c) + 4 In(/). Theconsumer is currently working 6 hours per day, is paid $15 per hour and the consumption good costs $5 perunit. Given this information, the consumer could increase their utility by%3Da. They are already at the optimal working hoursb. We cannot determine whether they should be working more or less with the information givenO c. Working lessd. Working moreWhich 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 wageb. A worker refuses to accept a job because they would rather wait for a better opportunityc. Workers choose to work fewer hours as unemployment benefits are generousd. Firms hold off on hiring new workers because they are worried that demand for their products will below

1. Given Utility Function U(c,l) = In(c) + 4 In(l) In here is the constant variable Working time = 6…

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An individual derives utility from consumption spending C and leisurel according to the following utility function: U(C,1)=C"1¹-a where 0>a>1. Leisure time in hours is given by: 1=T-H where T is hours of total time available and H is hours of work. The consumer's real income is given by: C=w (T-1)+N where w is real wage and N is real non-labour income. d) Verify that the second-order conditions for a constrained maximum are met. Reduce your answer (which should only be function a, w, N, and T) to the lowest terms.
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