Consider an overtime rule that requires that workers get paid double for any weekly hours over 40. Draw a picture that shows how a worker decides how much to work. Label everything in your picture and explain what is happening. Consider an investment that costs $100 and pays back $10 each year as long as the person making the investment is alive. Construct an equation for the net present value of the investment. An individual has a utility function, U = AX1 X2 where X1 and X2 are consumption of goods 1 and 2. The individual also faces a budget constraint. Show mathematically how an increase in Aa§ects the individualís decisions about consumption of each good.
Consider an overtime rule that requires that workers get paid double for any weekly hours over 40. Draw a picture that shows how a worker decides how much to work. Label everything in your picture and explain what is happening. Consider an investment that costs $100 and pays back $10 each year as long as the person making the investment is alive. Construct an equation for the net present value of the investment. An individual has a utility function, U = AX1 X2 where X1 and X2 are consumption of goods 1 and 2. The individual also faces a budget constraint. Show mathematically how an increase in Aa§ects the individualís decisions about consumption of each good.
Chapter15: The Distribution Of Income And Poverty
Section15.3: Why Income Inequality Exists
Problem 2ST
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Question
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Consider an overtime rule that requires that workers get paid double for any weekly hours over 40. Draw a picture that shows how a worker decides how much to work. Label everything in your picture and explain what is happening.
-
Consider an investment that costs $100 and pays back $10 each year as long as the person making the investment is alive. Construct an equation for the
net present value of the investment. -
An individual has a utility function,
U = AX1 X2
where X1 and X2 are consumption of goods 1 and 2. The individual also faces a budget constraint. Show mathematically how an increase in Aa§ects the individualís decisions about consumption of each good.
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