Consider an overtime rule that requires that workers get paid double for any weekly hours over 40. Draw a picture that shows how a worker decides how much to work. Label everything in your picture and explain what is happening.Consider an investment that costs $100 and pays back $10 each year as long as the person making the investment is alive. Construct an equation for the net present value of the investment.An individual has a utility function,U = AX1 X2where X1 and X2 are consumption of goods 1 and 2. The individual also faces a budget constraint. Show mathematically how an increase in Aa§ects the individualís decisions about consumption of each good.

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14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an overtime rule that requires that workers get paid double for any weekly hours over 40. Draw a picture that shows how a worker decides how much to work. Label everything in your picture and explain what is happening.
Consider an investment that costs $100 and pays back $10 each year as long as the person making the investment is alive. Construct an equation for the net present value of the investment.
An individual has a utility function,

U = AX1 X2

where X1 and X2 are consumption of goods 1 and 2. The individual also faces a budget constraint. Show mathematically how an increase in Aa§ects the individualís decisions about consumption of each good.

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