Suppose that Linda receives a fixed payment of $50 and consumes 8 hours of leisure. If her total earnings for the entire day is $300, we know her hourly wage rate must be (there are 24 hours in a day)
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- Ginny currently earns a (a. nominal; b. real) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.00 per gallon; in this case, Ginny's (a. real; b. nominal) wage, in terms of the amount of sparkling water she can buy with her paycheck, is (blank) gallons of sparkling water per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a (a. nominal; b. real) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's (a. real; b. nominal) wage is (a. lower; b. higher) than both the worker and employer expected when they agreed to the wage. Ginny and her employer both expected inflation to be 3% between 2012 and 2013, so they agreed, in a two-year contract, that she…Edie chooses to work 90 hours per week when the wage rate is $16 per hour. If she is offered time-and-a-half ($24 per hour) for “overtime work” (i.e., hours in excess of 90 per week), will she choose to work longer hours? Support your results with a diagram.Tim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour, and his labor supply curve is downward-sloping, this means:
- Weiwei gets a part-time job in high school that pays $5 per hour with flexible hours. Shechooses to work 6 hours per week, earning $30 per week. After a while, her job reduces herpay to $4 an hour. In response, she cuts back to working 5 hours per week, earning only$20 per week. Weiwei’s parents feel bad about the pay cut, and decide to give her a weeklyallowance, in cash, to make up for it. If they want to get her back to her old utility level,how much should they give her and why? (Select one answer from below) : (a) $10: that is her total amount of lost earnings(b) Between $10 and $6: that is the income effect minus the substitution effect(c) Between $10 and $6: leisure is a luxury good for high school students(d) $6: that is how much she would have lost if she kept working 6 hours(e) $5: the substitution effect offsets the change in labor hours(f) Between $6 and $0: she will substitute away from labor at the old bundle(g) Between $5 and $0: a pay cut is like a negative in-kind…The price of factor A is GHC20 per units and the price of factor B is GHC300.00 per unit. The marginal product of factor A is 40 units and the marginal product of factor B is 60 units. Should the firm increase employment of factor A and decrease employment of factor B to minimise the total long run cost of producing existing output? ExplainSuppose the wage you are being paid per hour doubles form $15 to $30. Would you decide to work more hours or fewer hours ? Is there an income and substitution effect involved in your decision about how many hours you choose to work? If so, what is being substituted for what?
- Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 168 hours. Her utility function is U ( C, L) = C x L. This functional form implies that Cindy’s marginal rate of substitution is C/L. Cindy receives $630 each week from her great-grandmother—regardless of how much Cindy works. What is Cindy’s reservation wage?Suppose that Boston consumers pay twice as much hours as she wants at a wage of w, chooses to work 10 hours a day. Her Boss decides to limit the number of hours that she can work to 8 hours per day. Show how her budget constraints and choice of hours change. Is she unambiguously worse off as a result of this change? Why?Q2) 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 hours. At $18 per hour, if she works 2200 hours per year, she would be indifferent to her original work decision before the wage increase. a) Draw a diagram to show all the given information related to Samantha's work circumstances. Calculate all the relevant income levels and label them in the graph. b) Calculate Samantha's income effect, substitution effect and total effect related to the wage increase. Show them in the diagram.
- Consider the following example: Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn $300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incur the following annual expenses: Rent 22,490 Salary-Legal Assistant Computer Software License Office Supplies 21,830 120 800 Internet Subscription 1,750 How much are Jordan's explicit costs? Number How much is Jordan's accounting profit? Number How much are Jordan's implicit costs? Number How much is Jordan's economic profit? Number Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm: What is the change in Jordan's explicit costs? Number What is the change in Jordan's implicit costs? NumberAccording to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Prior to restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). To hire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishi determine that its marginal productivity of capital is 0.5 small cars per hour at its new targeted level of output and that capital is procured in a highly competitive market. The same study indicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine the rate at which Mitsubishi can rent capital and marginal productivity of labour at its new targeted level of output. To minimize…Need help with this. Thanks! Kyoko currently earns a_________(nominal or real) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Kyoko's_________(nominal or real) wage, in terms of the amount of milk she can buy with her paycheck, is__________ gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a_______(nominal or real) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's________(nominal or real) wage is_______(higher or lower) than both the worker and employer expected when they agreed to the wage. Kyoko and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and…