George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes. Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope. Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve. Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods. The graphs below shows the behaviour of consumption of durables and nond
George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes. Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope. Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve. Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods. The graphs below shows the behaviour of consumption of durables and nond
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes.
- Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.
- Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve.
- Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint
- Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods.
- The graphs below shows the behaviour of consumption of durables and nondurables, and the employment to population ratio. As part of the government response to the pandemic, the majority of Americans received income assistance in the form of checks as well as an increase in the child tax credit. Given your answer in part (d), is the behaviour of the three
macroeconomic variables after the recession (end of gray area) and following the government transfers consistent with what macroeconomic theory predicts? Explain
I have answers to sub question 1-3. I need answers for questions 4 and 5
![FRED
of Chared 20
1.300
LIW
Bilers of Data
3.000
2.800
2.000
2.700
2.400
FRED
2.300
Real Personal Consumption Expenditures: Nondurable Goods
2911
Shaded areas indicate US recessions
Lave
2012
2911
2912
2013
Personal Consumption Expenditures: Durable Goods
Shaded areas indicate US recessions
2014
2013
2015
Source U.S. Dureau of Economic Analysis
2014
2014
2017
Source U.S. Bureau of Economic Analysis
2015
2016
2010
2019
2019
2021
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Transcribed Image Text:FRED
of Chared 20
1.300
LIW
Bilers of Data
3.000
2.800
2.000
2.700
2.400
FRED
2.300
Real Personal Consumption Expenditures: Nondurable Goods
2911
Shaded areas indicate US recessions
Lave
2012
2911
2912
2013
Personal Consumption Expenditures: Durable Goods
Shaded areas indicate US recessions
2014
2013
2015
Source U.S. Dureau of Economic Analysis
2014
2014
2017
Source U.S. Bureau of Economic Analysis
2015
2016
2010
2019
2019
2021
tred sounsled org
M
thed sousted.org
2022
![FRED
M
N
2013
FIM
20:30
MEINNAARer pleur](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71673091-805c-48ce-80ce-588078013db7%2Ffbe84873-47a3-4af4-9069-8824267ec93c%2Fu74x3hn_processed.png&w=3840&q=75)
Transcribed Image Text:FRED
M
N
2013
FIM
20:30
MEINNAARer pleur
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