consumption (units/year) 2500 2000 1500 1000 500 05 10 15 20 25 30 35 40 45 leisure (weeks/year) Ron chooses how many weeks to work each year. His time endowment T is 50 weeks per year, which conveniently lies on the grid in the figure below. His wage rate (w) is $400 per week, the price of consumption (p) is $10 per unit, and he has no nonlabor income (i.e., y = 0). What is Ron's real wage? That is, if he works another week, how many more units of consumption does he enjay? units Leisure is said to be a normal good if indifference curves get steeper going up a vertical line drawn through the optimal choice for the highest possible indifference curves associated with changes in: Non-labor income O All income O Labor income

consumption (units/year) 2500 2000 1500 1000 500 05 10 15 20 25 30 35 40 45 leisure (weeks/year) Ron chooses how many weeks to work each year. His time endowment T is 50 weeks per year, which conveniently lies on the grid in the figure below. His wage rate (w) is $400 per week, the price of consumption (p) is $10 per unit, and he has no nonlabor income (i.e., y = 0). What is Ron's real wage? That is, if he works another week, how many more units of consumption does he enjay? units Leisure is said to be a normal good if indifference curves get steeper going up a vertical line drawn through the optimal choice for the highest possible indifference curves associated with changes in: Non-labor income O All income O Labor income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

consumption
(units/year)
2500
2000
1500
1000
500
0 5
10 15 20 25 30 35 40 45 leisure
(weeks/year)
Ron chooses how many weeks to work each year. His time endowment T is 50 weeks per year, which conveniently
lies on the grid in the figure below.
His wage rate (w) is $400 per week, the price of consumption (p) is $10 per unit, and he has no nonlabor income
(i.e., y = 0).
What is Ron's real wage? That is, if he works another week, how many more units of consumption does he enjay?
units
Leisure is said to be a normal good if indifference curves get steeper going up a vertical line drawn through the
optimal choice for the highest possible indifference curves associated with changes in:
O Non-labor income
O All income
O Labor income

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