Question 3 The figure below illustrates Maria's employment rent on her current job. Maria earns $12 an hour and works 35 hours a week at a job that provides her with a disutility of work equal to $2 an hour. If she were fired, Maria would receive an unemployment benefit of $6 an hour, and it would take her 44 weeks to find a job identical to the one she currently has. Hourly wages ($) O $9,240 O $4 Unemployment benefit = $6 Hourly wage = $12 $6,160 Unemployment benefit plus the disutility of effort = $8 O $18,480 What is Maria's total employment rent? 0 0 = what Maria gets should she not lose her job today = what Maria gets should she lose her job today Maria's rent when employed Disutility of effort when employed What Maria receives in unemployment benefit during her period of unemployment Number of 35-hour weeks Employment rent per hour Reservation wage per hour Expected duration of unemployment = 44 weeks (1,540 hours)

Question 3 The figure below illustrates Maria's employment rent on her current job. Maria earns $12 an hour and works 35 hours a week at a job that provides her with a disutility of work equal to $2 an hour. If she were fired, Maria would receive an unemployment benefit of $6 an hour, and it would take her 44 weeks to find a job identical to the one she currently has. Hourly wages ($) O $9,240 O $4 Unemployment benefit = $6 Hourly wage = $12 $6,160 Unemployment benefit plus the disutility of effort = $8 O $18,480 What is Maria's total employment rent? 0 0 = what Maria gets should she not lose her job today = what Maria gets should she lose her job today Maria's rent when employed Disutility of effort when employed What Maria receives in unemployment benefit during her period of unemployment Number of 35-hour weeks Employment rent per hour Reservation wage per hour Expected duration of unemployment = 44 weeks (1,540 hours)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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