Q1) Deborah has 80 hours per week available for work and leisure. Her current rate is $25 per hour. Deborah has $400 of rental income every week. a) Construct a proper diagram to describe Deborah's choice of working 40 hours per week. Calculate Deborah's maximum possible income and optimal income, and show them in the diagram. b) Suppose Deborah recently moved into her boyfriend's place. She shares the household expenses and is "taxed" 50% of her wage income. Draw another diagram to compare Deborah's choice in Part a) and a new labor supply decision of working 50 hours per week due to the "tax". Clearly label out the income effect, substitution effect and total effect in the diagram.
Q: 3. Masagana Electronics, a firm that manufactures affordable microcomputers, is about to start…
A:
Q: What unemployment rate would most economists like to see? Group of answer choices 0% 1% 4 to 5% 7 to…
A: Unemployment rate is a rate of unemployed people in the economy who are able to work but not getting…
Q: Determine whether each of the following topics would more likely be studied in microeconomics or…
A: Economics is the study of the distribution of available resources among different agents to produce…
Q: Consider a simple economy that produces two goods: stickers and paper plates. The following table…
A: Nominal and real GDP: GDP or gross domestic product determines the sum of the values of all end…
Q: Using “The Evolution of Economic Thought” book by Randy R. Grant and Stanley L. Brue as reference,…
A: Neoclassical economics is a school of economic thought that usually emerged in the late 19th and…
Q: The following production table gives estimates of the maximum amounts of output possible with…
A: The change in output brought on by one more unit of input is known as the marginal product. It is…
Q: The following are two alternatives need to be evaluated and select the best available one: X -35000…
A: Because the alternatives have unequal useful life thus LCM method will be used The LCM of 2 and 4…
Q: Price Quantity A Consider the above market for McDonald's Filet-O-Fish. What happens to the…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Rightward…
Q: Consider the following panel model to examine the effect of retirement on consumption expenditure,…
A: Given: (B1) log(consit) = β0 + β1retiredit + β2ageit + β3marriedit + β4healthit + δ1Yr2t + δ2Yr3t +…
Q: (11) Assume two firms with the same constant average and marginal cost, AC = MC = 5, facing the…
A: Introduction When several enterprises offer equivalent competitive goods or services, monopolistic…
Q: Healthcare insurance is very hard to navigate and it can take a long time to get approval. If the…
A: In economics, healthcare refers to the goods and services used to diagnose, treat, and prevent…
Q: When the unemployment rate rises, why is the problem even worse than the number indicates?
A: Unemployment rate is calculated by dividing the number of people unemployed in the economy by the…
Q: What effective annual interest rate corresponds to the following situations? a. nominal interest…
A: The effective interest rate (EIR) refers to the actual interest rate that a borrower pays (or earns)…
Q: would this be considered deflation?
A: Inflation is the rate of rise in costs over a given period. Inflation is typically a wide measure,…
Q: Suppose the U.S. president is attempting to decide whether the federal government should spend more…
A: A federal government is a system in which local state governments that are interconnected with the…
Q: Lilac Poland and Wales both produce boots and wheat. Poland's opportunity cost of producing a bushel…
A: Introduction A country's capacity to produce a specific good or service for less money than its…
Q: Darnell and Eleanor Cohen live in Conshohocken, PA. Their son, Jacques, owns his own plumbing…
A: GDP Examples: GDP is computed with the following formula GDP = C+I+G+MX. C is the money spent on the…
Q: When asked for investment advice,humorist Will Rogers joked that people should "[b]uy land. They…
A: The demand and supply model is a basic tool used in economics to analyze the market behavior of…
Q: Karrie's income varies directly as the number of days that she works. If she earns Php 9,000.00 in…
A: The income of a consumer can be affected by various factors such as their job or business,…
Q: Use the figure below, interpreting the red Lorenz curve, it can be concluded that incomes in this…
A: Inequality can be observed from a variety of angles, all of which are interconnected. Income…
Q: When a lower-income economy’s GDP is able to “catch up” with a higher-income economy’s GDP, this…
A: GDP is the gross domestic product. GDP is the sum of all the goods and services produced in an…
Q: Consider the model in chapter 3. Suppose the consumption equation is represented by the following…
A: Consumption refers to the spending done on buying goods and services from the market. In the…
Q: 3. Paul Davies owns a British Consul, a security which pays the equivalent of $2000 U.S. each year…
A: A financial concept known as the present value (PV) depicts the current worth of expected future…
Q: ng graph, plot the demand for laundry detergent using the blue point (circle symbol). Next, plot the…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: Explain how the monetary policy influences banks' lending behavior. Show how an open market purchase…
A: A monetary policy is a monetary authority’s principle of conduct that changes the money supply in…
Q: EX LO d @ Safari File Edit View History Bookmarks Window Help Lily ✓ My Home Courses Rental Options…
A: To check which country has the comparative advantage in peas and pistachios, we have to calculate…
Q: the long run aggregate supply curve is downward sloping, while the short run is vertical. the…
A: Under the short run supply curve it is possible for the economy to produce more goods as it can…
Q: John invests $1200 at an annual rate of 4.4% compounded semi-annually for 3 years.
A: We use the formula for compound interest. A = P[1+r]ⁿ Since we have semi annually we use the…
Q: Suppose that the preferences of a consumer regarding the consumption of goods q₁ and q2 are…
A:
Q: A small computing center has found that the number of jobs submitted per day to its computers has a…
A: A set of data's spread or dispersion is measured by standard deviation. It describes the deviation…
Q: Table 4-11 Price $10 $8 $6 $4 $2 a) Quantity Demanded c) 10 d) 20 30 40 50 b) $2 and 50 units.…
A: Market demand and Supply: In the market for a good, we have the demand and the supply curves. And…
Q: What is your stand about the rice tariffication law in the philippines? explain thoroughly.
A: The purpose of the Rice tariffication Law is to liberalize the rice industry by eliminating quotas…
Q: Calculate the value of CEO tenure at which the impact of this variable on CEO salary is optimised..
A: The equation can be written as :- CEO salary=20.29(CEO tenure)-1.14(CEOtenure)2 For optimisation…
Q: decrease in the price of a good will Question 17 options: a) decrease quantity supplied. b)…
A: The supply curve depicts the positive relationship between price and quantity supplied, keeping…
Q: Calculate GDP given the following. Please leave off the dollar sign in your answers. Item Quantity…
A: GDP is the gross domestic product. GDP is the sum of market value of all goods and services…
Q: Suppose we have the following consumer price index (CPI) data for a nation: Year CPI 2016 222.77…
A: The inflation rate implies the rate at which inflation is rising over a specific period. This rate…
Q: A Grab driver who does not own the car is very harsh on his driving as he knows that the car is not…
A: Yes, We show the above scene is an excellent example of the problem of moral hazard, because in…
Q: You buy 2000 shares of XYZ for $50 with 55% margin. Three months later the price is $60. What is the…
A: Investment buying power refers to the amount of money that an investor has available to purchase…
Q: What short and long term effects did deregulation of the banking industry from the 1980s through the…
A: Deregulation: The first phase of deregulation began with the lifting of quantitative controls on…
Q: 2. A consumer has the utility function u = (x₁c₁) ª (x₂-C₂), a+b=1 U = (x1 - C1) (x2 - C2), a+b=1…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: K Does the existence of credit market imperfections imply that there is a useful role for government…
A: Imperfections in the credit market refer to the low quality of information that exists in these…
Q: Hacmillan Learning Christine and Paul are deciding how to split their time between writing music and…
A: A comparative advantage is the capacity to produce goods and services at a lower cost, without…
Q: Suppose a bank wants to earn a real rate of interest equal to 7.23% and they expect the rate of…
A: Interest paid on loans that do not take inflation into consideration is the nominal interest rate.…
Q: A county will invest $4,200,000 to clean up a chemical spill that occurred following a natural…
A: The benefit-cost ratio (BCR) is an indicator representing the connection between the relative costs…
Q: 1. Assuming that the current interest rate is 3 percent, compute the present value (or price) of a…
A: The present value of the face value added to the present value of the coupon payments equals the…
Q: 2.) Sugar Enterprises manufactures high speed personal computers as its main product line. Its short…
A: Short-run production function is given as Q=3600K-4.5K2
Q: Use the information in the following table on labor productivities in Spain and Italy to answer…
A: Comparative Advantage is an economy's ability to produce a particular good or service at a lower…
Q: Suppose we have the following consumer price index (CPI) data for a nation: Year CPI 2016 221.88…
A: Consumer Price Index (CPI) is an instrument to measure inflation that shows the average change in…
Q: QUESTION 31 If you have a $20,000 car loan for 3 years at 6% with monthly compounding and payments,…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Q3) Use the following data to illustrate the demand curve and total revenue curve, and then answer…
A: Total revenue is the product of price and quantity. Total revenue is maximized where marginal…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- 5. Rhoda’s preferences for consumption and leisure can be expressed as U(C, L) = (C - 100) × (L - 40). There are 110 (non-sleeping) hours in the week available to split between work and leisure. Rhoda earns 10 GHS per hour after taxes. She also receives 320 GHS worth of support from her parents each week regardless of how much she works.a. What will be Rhoda’s marginal utility of leisure and her marginal utility of consumption?b. What is Rhoda’s marginal rate of substitution when L = 100 and she is on her budget line?c. Find Rhoda’s optimal amount of consumptiona) Chika has calculated the marginal utility that she derives from her paid employment and from leisure. This is presented in table below. In her ideal world, where she could work as few or as many hours as she wished, how would she allocate her sixteen waking hours? (She does need to sleep.) Hours 1 2 3 4 5 6 7 8 9 10 MU Paid Employment 105 95 85 75 65 55 45 35 25 15 MU Leisure 100 90 80 70 60 50 40 30 20 10 hours working and b) Unfortunately, Chika begins to realize that unless she gets an education she will not enjoy a high salary and therefore, will not be able to afford more leisure time. She therefore decides to spend six hours each day studying (in addition to her eight hours of sleep). How will she now divide the remaining hours between work and leisure? hours working and hours leisure. hours leisure.Suppose Marcus eats nothing but burritos for dinner. He buys 30 burritos each month. During the last couple of weeks, Marcus noticed a decrease in the price of burritos. The price of burritos fell from $6.00 per burrito last month to $5.75 per burrito this month. Assume that Marcus has a fixed income of $180 that he can spend on burritos. How many burritos can Marcus afford to buy at the new price of $5.75?
- Deborah has 80 hours per week available for work and leisure. Her current wage rate is $25 per hour. Deborah has $400 of rental income every week. a) Construct a proper diagram to describe Deborah’s choice of working 40 hours per week. Calculate Deborah’s maximum possible income and optimal income, and show them in the diagram. b) Suppose Deborah recently moved into her boyfriend’s place. She shares the household expenses and is “taxed” 50% of her wage income. Draw another diagram to compare Deborah’s choice in Part a) and a new labor supply decision of working 50 hours per week due to the “tax”. Clearly label out the income effect, substitution effect and total effect in the diagram. Question Two Samantha has an annual non-labour income of $5000. Suppose she has the total available time of 4160 hours per year. Samantha's wage rate is $15 per hour, and she chooses to work 2000 hours in a year. Suppose when Samantha's wage rate increases from $15 to $18 per hour, she will work 2040…1) Sharon spends her time (20h) between leisure (L) and work and he consume Y product from his working income (Py=1). Assume that she gets W$ per hour of working and has the following utility function: U (L, Y) =LY+2L C. vv). e. VS What will happen to L, Y and H if the wage per hour (W) will decrease? d. How would your answer to the previous question (c) will change if Sharon has a fixed amount of money (Wo) that is not connected to W? If Sharon has the following utility function: U= L³+ Y², is it possible that she will choose not to work at all? Explain and show the condition for your result if exists. |||Terry decides to increase her work hours from 20 to 25 hour per week. 1. What would be her marginal utility loss from having less leisure time? 2. What would be her marginal utility gain from having additional income?
- Suppose your weekly allowance from your parents is $100 and your part-time job pays $10 per hour. The slope of the line plotting the relationship between the hours worked per week (the horizontal axis) and the income per week (the vertical axis) is $. (Enter your response as an integer.) Suppose you start with 10 hours of part-time work and then decide to increase your time working by 3 hour(s). By how much will your weekly income increase? $. (Enter your response as an integer.) Suppose you start with 10 hours of work and then decide you need additional income of $20 per week. How many additional hours would you have to work? hours. (Enter your response as an integer.)Sven runs a daycare for some of the neighborhood children, where he earns $300/day inrevenue. He runs the daycare out of his home, for which the mortgage costs $3,000 per month($100 per day). Each day, Sven spends $50 on food, diapers, and other supplies. He also hassome toys and playground equipment that originally cost $500, but which he wouldn’t getany money for reselling today. Sven looks after all the children himself, so he doesn’t pay anymoney in labor costs. If he weren’t busy with the daycare, he could earn $120 per day as aprivate nanny. What is Sven’s daily economic profit from the daycare? (Select one from below) (a) $300: Economic profit is equal to revenue.(b) $180: That is his revenue minus opportunity cost.(c) $150: That is his revenue minus input cost.(d) $130: That is his revenue minus variable cost.(e) $50: That is his revenue minus accounting cost.(f) $30: That is his revenue minus economic cost.(g) $0: In the long run, all firms must make zero profits.(h) –$200:…7. An individual's utility function is given by U =1000x, +450x, +5 x,x, -2x - x where x, is the amount of leisure measured in hours per week and x, is income earned measured in cedis per week. Determine the value of the marginal utilities, when x, = 138 and x, = 500. Hence estimate the change in utility if the individual works for an extra hour, which increases earned income by GH¢15 per week. Does the law of diminishing utility hold for this function?
- 3. John's utility function is U(C, L) = C1/2L!/2. The most leisure time he can consume is 110 hours. His wage rate is $10. Find John's optimal amount of consumption and hours for leisure and work.1 Task 1.pdf - Adobe Reader File Edit View Window Help Оpen 1/ 1 125% Tools Fill & Sign Comment Sign In • Export PDF v Create PDF Adobe PDF Pack Task 1 Convert files to PDF and easily combine them with other file types with a paid subscription. To help Janette cover her college expense, parents provide Janette with a monthly allowance of $340. Besides, Janette earns $600 per month from the part-time job. Janette has to pay $200 in rent expense and $ 75 per month for her car insurance. Janette plans to spend monthly $80 on clothes, $50 for personal care, and $100 for entertainment. Janette also estimates her monthly eating out expense at $140, and she expects that $100 will be enough to cover all her other spending. Given that Janette follows the above income/spending schedule, how much can she put aside within eight Select File to Convert to PDF: Select File • Edit PDF months? Assume Janette puts the amount she put aside within eight months on the account that • Combine PDF • Send…Jien is just bored all the time; no amount of success makes him happy, it seems. Below is a list of his income for the last several years and the utility he experienced per dollar of income: Year Yearly Income Utility per Dollar Earned 2017 $60,000 2 utils 2018 $70,000 1.8 2019 $100,000 1.5 2020 $120,000 1 2021 $145,000 0.40 From the above, we can say that Jien most likely is different from most people economists study in terms of risk attitudes is "risk loving" will not take a fair bet has a utility of wealth curve that is a straight line