Consider an exchange economy with two types of agents, A and B, and two goods, r and Y. Preferences are given byuA(XA, YA) = xA+ 6 In(yA) and up(xB, YB) = In(*BYB). Suppose the government wants to reach the goal of 2B = 5 with thecompetitive equilibrium by setting a redistribution r such that wa =the government's goal. Round your answer to 2 decimal points.(10, r) and wg = (0, 20 – r). Let Py =1. Find r reachesAnswer:The correct answer is: 1.82Tom and Jerry live together, and they plan to do the chores on the weekends. They have 4 tasks to finish, and each of them needsto pick 2 tasks to finish. The table below demonstrates the their utilities of doing a task. The higher the utility is, the more preferredthe task is.[Laundry] [Moaning]l[Car Washing] [Floor Cleaning]Tom-5-10-10Jerry-6-3-12-3The current allocation is that Tom does moaning and car washing while Jerry does laundry and floor cleaning. What is theminimum value that X can be to make the current allocation Pareto optimal?Answer:The correct answer is: -5

Consider an exchange economy with two types of agents, A and B, and two goods, a and y. Preferences are given by uA(TA, YA) = XA +6 ln(yA) and ug(xB, YB) = In(rBYB). Suppose the government wants to reach the goal of rB = 5 with the competitive equilibrium by setting a redistribution r such that wa = (10, r) and wy = (0, 20 – r). Let Py = 1. Findr reaches the government's goal. Round your answer to 2 decimal points. Answer:

Consider an exchange economy with two types of agents, A and B, and two goods, a and y. Preferences are given by uA(TA, YA) = XA +6 ln(yA) and ug(xB, YB) = In(rBYB). Suppose the government wants to reach the goal of rB = 5 with the competitive equilibrium by setting a redistribution r such that wa = (10, r) and wy = (0, 20 – r). Let Py = 1. Findr reaches the government's goal. Round your answer to 2 decimal points. Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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