Figure 2 30000 Shannon 28000 26000 24000 22000 20000 18000 16000 14000 12000 10000 8000 $ of consumption per year sample indifference curves: 6000 4000 2000 333 0 200 400 600 1166 800 1000 1200 1400 1600 1800 2000 2200 Hours of leisure per year Suppose all workers have 2000 hours to spend in work or leisure. Figure 2 displays sample indifference curves and a budget constraint corresponding to no income redistribution program for Shannon.
Figure 2 30000 Shannon 28000 26000 24000 22000 20000 18000 16000 14000 12000 10000 8000 $ of consumption per year sample indifference curves: 6000 4000 2000 333 0 200 400 600 1166 800 1000 1200 1400 1600 1800 2000 2200 Hours of leisure per year Suppose all workers have 2000 hours to spend in work or leisure. Figure 2 displays sample indifference curves and a budget constraint corresponding to no income redistribution program for Shannon.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.3P
Related questions
Question
100%
Figure 17-2
Figure 17-2 displays sample indifference curves and a budget constraint corresponding to no income redistribution program for Shannon.
Suppose all workers have 2000 hours to spend in work or leisure.
Figure 17-2 displays sample indifference curves and a budget constraint corresponding to no income redistribution program for Shannon.
Question 41
1 / 1 pts
Refer to Figure 17-2
With no income redistribution (welfare) program, how many hours does Shannon work per year?
Correct!
1,200
1,200 (with margin: 100)
Correct,
Shannon is on the highest indifference curve when he takes 800 hours of leisure (1200 hours of work)
Question 42
1 / 1 pts
Refer to Figure 17-2
Suppose a welfare program with benefit guarantee of $10,000 is implemented with 100% benefit reduction rate. How much does Shannon work now? Enter a whole number and no text.
Correct!
0
0 (with margin: 0)
Transcribed Image Text:Figure 2
30000
Shannon
28000
26000
24000
22000
20000
18000
16000
14000
12000
10000
8000
$ of consumption per year
sample indifference
curves:
6000
4000
2000
333
0
200
400 600
1166
800 1000 1200 1400 1600 1800 2000 2200
Hours of leisure per year
Suppose all workers have 2000 hours to spend in work or leisure.
Figure 2 displays sample indifference curves and a budget constraint corresponding to no income
redistribution program for Shannon.
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