Scenario 18-3Amari has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resortwhere he earns $18 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.Refer to Scenario 18-3. During the summer months, what is Amari's opportunity cost of taking an hour off work to goenjoy some leisure time?$13O Between $13 and $18O $18O Less than $13

To determine Amari's opportunity cost of taking an hour off work during the summer to enjoy some…

Answered: Scenario 18-3 Amari has two jobs, one…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour. Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal places where necessary. a) What is the maximum consumption available to Leslie if she works 35 hours a week? b) What is the minimum number of hours Leslie must work to attain $600 of consumption? c) At which level of consumption does the kink in the budget line occur? d) What is the maximum consumption available to Leslie if she works 70 hours a week?
Regarding the previous page, consider you and your partner are able to sell your current property and invest in a small guest house in Blackpool, a seaside resort in the UK, for the same amount of money. The guest house has eight double bedrooms. It is a bit run down. You currently work as a school teacher and your partner has been unemployed for a number of years. Outline the factors that would determine whether or not this is a good investment taking in consideration the opportunity cost and that your business partner is unemployed.
Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour. Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal places where necessary. e) What is the minimum number of hours Leslie must work to attain $2056 of consumption a week? Suppose, in parts ( ƒ ) to (h), that the government subsidises workers' wages at $2 for every hour worked. f) At what level of consumption does the kink in this new budget line occur? g) What is the maximum consumption available to Leslie if she works 70 hours a week given this subsidy? h) How many hours fewer does Leslie need to work to attain the maximum level of consumption she could achieve before the subsidy?
Assume parents are evaluating the opportunity costs of stay-at-home moms or dads under different scenarios. You should thoroughly explain whether the parent’s decision under each of the following scenarios would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to work outside the home). There is low unemployment rate in the economy. There is high average wage rate in the economy. There is no improvement in the economic conditions that led to high demand for labor. Suppose the government increased income tax rates on wages earned.
Resource consumption per person in the United States is either flat or falling, depending on the resource. Yet living standards are rising due to improvements in technology that allow more output to be produced for every unit of input used in production. What does this say about the likelihood of our running out of resources? Could we possibly maintain or improve our living standards even if the population were expected to rise in the future rather than fall?
If Jasmine had not taken a job at a restaurant, she would have taken a job at a department store. The opportunity cost of her taking the restaurant job is the difference in future earnings because of not pursuing an advanced degree. the difference in present expenses due to not moving back to her home state to live with her grandparents. the total value of the job at the department store, including wages, work experience, and so on. the total expenses associated with interviewing for the restaurant job, including transportation, time, and anxiety. the total expenses associated with the restaurant job, including clothing, transportation, and so forth.
Farmer Jack is a well-established farmer who owns two plots of land. He refers to his fields of land by names. One field/plot of land is called Gator Plot, and the other one is called Brown Plot. As a farmer, Jack produces Cotton and Grains. Gator plot has a total of 80 acres of land, and in this field, it takes 10 acres to produce 1 unit of Cotton and 20 acres to produce 1 unit of Grains. On the other hand, Brown Plot has 100 acres of land. In this field, it takes 20 acres to produce 1 unit of Cotton and 10 acres to produce 1 unit of Grains. However, because Jack has been farming for a while now, he is worried about overharvesting COTTON because if he harvests too much Cotton, then the land will become barren. Consequently, there is a quantity restriction on Cotton and only Cotton. The restriction is outlined as follows: FIRST, there is a quantity restriction of 4 Cotton in Gator Plot. This means that Gator Plot is allowed to produce a maximum of 4 units of Cotton. SECOND, there is a…
What is part of the opportunity cost of borrowing a textbook from the library instead of buying it, when I am already a member of the library? The annual fee for library membership. The wage I could have earned in the time I visited the library. It has no opportunity cost if I have a subscription for the channel. The price of the book. It is a very difficult problem to understand. It depends on what we think, so please give us a definite answer with specific explanation. Personally, If the man buys the book instead of borrowing book from the library, he can save that time to use it for the work so that he can earn his wage.
Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? $
Suppose that you are in the fall of your senior year and are facing with the choice of either getting a job or going to law school when you are graduated. The choice is not purely financial, however, to make an informed decision you would like to know the financial implications of the two alternatives. Let’s assume that your opportunities are as follows: • If you take the “get a job” route, you expect to start off with a salary of $45,000 per year. There is no way to predict what will happen in the future, but your best guess is that your salary will grow at 5 percent per year for the first 20 years and increase to 6 percent onward. You expect to retire in 40 years. • As a law student, you will be paying $25,000 per year in tuition for each of the three years you are in graduate school. However, you can then expect a job with a starting salary of $80,000 per year. Moreover, you expect your salary to grow by 7 percent per year for 17 year and increase to 8 percent for the next 20 years.…
Lance lives in Williston, North Dakota. The firms in town, such as the Walmart, pay teenagers without a high school degree the federal minimum wage of $7.25 an hour. Because his parents provide him Y (mostly in the form of room and board), Lance chooses to stay in school and not work. However, a new fracking firm starts production nearby so the wage rises to three times the minimum wage. Use a labor-leisure choice figure to show why he does not work initially but then works a substantial number of hours at the higher wage. Draw Lance's original budget constraint and show that he does not choose to work. The firms in town, such as the Walmart, pay teenagers without a high school degree the federal minimum wage of $7.25 an hour. Assuming the price of consumption is $1.00, what is the slope of Lance's original budget constraint? The slope of Lance's original budget constraint is places.) (Round your response to two decimal C
Consider the standard Ramsey model with endogenous labor supply. Assume that the house- hold has a unitary time endowment that it can split between labor time (L;) and leisure time (1 – Lt). The household's problem is defined as follows: Σ Vo Bt. max Ct,Ct+1,Lt,Lt+1,Kt+1 t=0 s.t. K41 - Kį =r¡Kt +W¿Lt – Ct The representative firm maximizes profit as follows: max по — Lt,Kt Y; – w;Lt – (rt + 8)K; (1+r¿)* t=0 s.t. Y = AK, L -a

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