Maria can work up to 40 hours per week at Sparkle, one of many competitive firms that make and sell hand-crafted jewelry and pay $25 per hour. The budget constraint below shows the tradeoff that she faces in terms of earnings versus leisure each week. S earnings $1,000 Maria's weekly budget constraint 40 leisure (hours) A. In an effort to raise revenues, the government is considering raising income taxes on workers like Maria. How would a higher tax change Maria's budget constraint?

Maria can work up to 40 hours per week at Sparkle, one of many competitive firms that make and sell hand-crafted jewelry and pay $25 per hour. The budget constraint below shows the tradeoff that she faces in terms of earnings versus leisure each week. S earnings $1,000 Maria's weekly budget constraint 40 leisure (hours) A. In an effort to raise revenues, the government is considering raising income taxes on workers like Maria. How would a higher tax change Maria's budget constraint?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Now suppose that a government antipoverty program guarantees every individual a certain level of income. Move the Government Support line to illustrate a situation in which the individual starts making an income higher than the government support income when he/she works more than 2,000 hours (or takes fewer than 1, 000 leisure hours). Provide your answer below: 30000 25000- (0, 24000) 20000 15000- 10000 Government Support ($5000) 5000 (3000, 0) 2000 3000 Leisure (hours) 1000 4000 Income ($)
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just subpart d please
Sheila's income and leisure preferences can be expressed by U(Y, L) = 2 x (YL - 40Y - 100L) This utility function implies that Sheila's marginal utility of leisure is 2Y - 200 and her marginal utility of income 2L-80. In a week, there are 168 hours available for her to allocate between work and leisure. Sheila earns $10 per hour after taxes and receives $120 worth of welfare benefits each week during the pandemic regardless of how many hours she decides to work. Assume that the price index is 1. a) What is Sheila's budget line? b) What is Sheila's marginal rate of substitution when L = 100 and she is on her budget line? c) What is Sheila's optimal relationship between income and labour hours? d) What is Sheila's optimal amount of labour hours, leisure hours, and income? e) At the optimal allocation, what is Sheila's utility level? Show your work.
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Consider two individuals, Carole and Mo, who each have a job opportunity that pays a wage of $20 per hour and allows them to choose the number of hours per week they'd like to work. Carole has stronger preferences for leisure than Mo. Ultimately, both Carole and Mo choose to work more than zero hours per week. Draw (and upload) one graph that includes: • Carole and Mo's income-leisure constraint • Carole's utility-maximizing indifference curve (Uc) and choice of leisure hours (Lc) • Mo's utility-maximizing indifference curve (UM) and choice of leisure hours (LM) [Note: There are multiple, though similar, ways to draw this graph. Focus on ensuring that the constraint, indifference curves and hours worked align with the information provided above.]
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