The graph below shows the budget constraint between income and leisure for an individual as well as a government program that guarantees a certain amount in income but then reduces this amount by $0.50 for each $1.00 earned. Step 1. Move the government support line (dotted line) to reflect the data given in the table. Step 2. Move the vertical intercept of the budget line to reflect the data given in the table. Note: On both steps, assume that the table gives information up to the maximum available time for work/leisure for this individual. Table 1: The Labor-Leisure Tradeoff with Assistance Reduced by $0.50 for Each $1.00 Earned Amount Worked (hours) Total Earnings Government Support Total Income $18, 000 $18, 000 500 $4, 000 $16, 000 $20, 000 Provide your answer below: 30000 (0, 25000) 20000 10000- -Government-Support-(900,$12000)- Income ($)

The graph below shows the budget constraint between income and leisure for an individual as well as a government program that guarantees a certain amount in income but then reduces this amount by $0.50 for each $1.00 earned. Step 1. Move the government support line (dotted line) to reflect the data given in the table. Step 2. Move the vertical intercept of the budget line to reflect the data given in the table. Note: On both steps, assume that the table gives information up to the maximum available time for work/leisure for this individual. Table 1: The Labor-Leisure Tradeoff with Assistance Reduced by $0.50 for Each $1.00 Earned Amount Worked (hours) Total Earnings Government Support Total Income $18, 000 $18, 000 500 $4, 000 $16, 000 $20, 000 Provide your answer below: 30000 (0, 25000) 20000 10000- -Government-Support-(900,$12000)- Income ($)

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. Suppose that the individual starts making more than the guaranteed annual government support level when he/she works more than 2000 hours in a given year (and, in essence, spends 500 hours or less in leisure activities). Move the Government Support line to represent the level of government support for which the above is true. Provide your answer below: 30000 25000 (0, 25000) 20000- 15000- 10000- 5000- Government SUpport ($3000) (2500, 0) 2000 Leisure (Hours) 1000 3000 Income ($)
Solve all this question......you will not solve all questions then I will give you down?? upvote.... Need some help, will leave like. Thank you!
Suppose that a company wishes to predict sales volume based on the amount of advertising expenditures. The sales manager thinks that sales volume and advertising expenditures are modeled according to the following linear equation. Both sales volume and advertising expenditures are in thousands of dollars. Estimated Sales Volume = 48.06 + 0.53 (Advertising Expenditures) If the company has a target sales volume of $100,000, how much should the sales manager allocate for advertising in the budget? Round your answer to the nearest dollar.
The graph below shows the budget constraint between income and leisure for an individual. The individual has a total of 4000 hours to divide between working and leisure for the entire year. The maximum an individual could make by working all 4000 hours is $20,000. For every hour spent in leisure, one less hour is spent working and vice versa. Suppose that, as illustrated in the graph, a government antipoverty program guarantees the individual $10, 000 in income per year. As the current government support is too low to help individuals out of poverty, the government has decided to increase the government support to $22, 000 per year. The individual is no longer motivated to work any hours as it is not possible for him/her to make more income than the guaranteed government support. Move the Government Support line to illustrate this outcome. Provide your answer below: 30000 25000 (0, 20000). 20000 15000- Government Support ($10000) 10000 5000 (4000, Q) 2000 4000 3000 Leisure (Hours) 1000…
Question 4 Consider a budget constraint between Leisure Hours and $'s of Consumption. Suppose you initially have an endowment of 50 hours to work or spend in leisure activities and you can earn $20/hour. Suppose that your grandparents, in an effort to encourage you to develop a strong work ethic, offer to pay you match your wage, thereby doubling it, after you have worked 40 hours. • The new y-intercept will be • There will be a kink in the budget constraint at hours and dollars. dollars
Please refer to the following information to answer the question (in bold) below: • You have $400 allocated for your monthly food budget. • You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is currently $8/meal (PR = $8). • The price of groceries is $2/pound of food (PG= $2). Which of the following expressions represents your budget constraint. G = 50 - 4R R = 50 -0.25G 400 = 8G + 2R G = 200 -0.25R
Suppose that •y =100 (income today) • y' = 150 (income tomorrow) • r = 10% (interest rate on bonds) t = 10 (taxes today) %3D • t' = 10 (taxes tomorrow) What is the lifetime budget constraint for the consumer? c + c'/1.1 = 250 c + c'/1.1 = 230 c + c' = 217.27 c + c'/1.1 = 217.27
Stuart's utility function for goods X and Y is represented as U(X,Y)=X0.8Y0.2. Assume that his income is $100 and the prices of goods X and Y are $20 and $10, respectively. Now a government subsidy program lowers the price of X from $20 per unit to $10 per unit. (a) Calculate and graphically show the change in good X consumption resulting from the program. (b) Graphically show the change in consumption attributable to the separate income and substitution effects. (c) Show (graphically) how much the program cost the government.
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.
Please refer to the following information to answer the question (in bold) below: • You have $400 allocated for your monthly food budget. • You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is currently $8/meal (PR = $8). • The price of groceries is $2/pound of food (PG= $2). For each of the following bundles of groceries and restaurant meals, identify whether the bundle is affordable or unaffordable to you, given your budget constraint. Bundle A: (G, R) = (100, 25) Bundle B: (G, R) = (50, 40) Bundle C: (G, R) = (3, 180) O Only Bundle A is Affordable Only Bundle B is Affordable Only Bundle C is Affordable Only Bundles A and B are Affordable Only Bundles A and C are Affordable Only Bundles B and C are Affordable None of the Bundles are Affordable
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…
Consider a model where a consumer, Mehdi, is deciding how to allocate their 24 hours each day between work and leisure. The take-home wage they initially receive is w = 15, but following a rise in income tax, their take-home pay falls to w = 12. Following this change in the wage rate, the budget constraint changes from the blue line to the red line. Mehdi reallocates his time between work and leisure, as shown in the diagram below: Composite good 0 L₁ L2 L3 Time Constraint 24 Leisure (0-24)/ Work (24-0) Given this information, which of the following conclusions can we reach? The substitution and income effects both cause Mehdi to take more leisure time, meaning leisure is an inferior good. The substitution effect causes Mehdi to take more leisure time, while the income effect causes Mehdi to take less leisure time, meaning leisure is a normal good. The substitution effect causes Mehdi to take more leisure time, while the income effect causes Mehdi to take less leisure time, meaning…