2 consider toms labor supply decision tom can earn 15 per

Assignment Help Business Economics
Reference no: EM13375310 , Length: 338 words

2. Consider Tom's labor supply decision. Tom can earn $15 per hour, but he faces a 20% tax rate and pays $4 per hour in child care expenses for each hour he works.
a. What is Tom's 'real' hourly wage rate?
b. How much will it be if he had 128 hours of leisure (= worked 40 hours)d. Tom chooses to work 40 hours a week. On the above graph, draw Tom's indifference curves between leisure and money so that this is his optimal labor supply choice.
3. Brad and Angelina are married with kids. Suppose Brad's at-home productivity as a parent is $25 and Angelina's is $40.
a. Who has an absolute advantage in the home? How do you know?
b. If Brad works in the labor market, he can earn a wage of $500 per hour, while Angelina can earn $600 per hour. Considering comparative advantage, which of the two should specialize in the labor market? Explain.

Reference no: EM13375310

Questions Cloud

To be successful leaders in the global business world of : to be successful leaders in the global business world of the 21st century managers must consider economic trends
For the paper you will need to discuss the difference : for the paper you will need to discuss the difference between the cpi measure of inflation as collected by the bureau
A tax imposed on imports is calleda tariffa quotaa : a tax imposed on imports is calleda tariffa quotaa comparative advantagean excise taxquestion 2this result proposes
Suppose there are nine sellers and nine buyers each willing : suppose there are nine sellers and nine buyers each willing to buy or sell one unit of a good with values 10 9 8 7 6 5
2 consider toms labor supply decision tom can earn 15 per : 2. consider toms labor supply decision. tom can earn 15 per hour but he faces a 20 tax rate and pays 4 per hour in
The graph below shows the equilibrium level of income for : the graph below shows the equilibrium level of income for two sector economy.questions1.what is the value of x y
Question 1nbspa firm that emerges as the only seller in an : question 1nbspa firm that emerges as the only seller in an industry with economies of scale is
Assume you have been hired as a managing consultant by a : assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
Suppose the yield to maturity on a 2 year treasury note was : suppose the yield to maturity on a 2 year treasury note was 4.5 while the yield on a 1 year not was 5.5 assume that

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd