Child of a wealthy family is deciding work mooch off

Assignment Help Macroeconomics

Reference no: EM1326747

Important information about Labor Economics

A child of a wealthy family is deciding whether to work or not work and mooch off her parents. Imagine that she is offered a job that pays her $50/hour.

a) Assume she receives a weekly stipend from her parents worth $1000. use an indifference map and budget line to depict a situation where she does not work. show the reservation wage on the graph.

b) If her parents took the stipend away, would her decision change? show on the graph.

c) On a new graph (using the same assumptions in (b)), what would happen to her hours of work if the job instead paid $100/hour? Clearly label the income and substitution effects.

d) On a new graph, (using the same assumptions in (b)), what would happen if the prices of everything in the economy were half of what they were in your original setup? Clearly label the income and substitution effects.

Reference no: EM1326747

Questions Cloud

Describing process to create a vision for organization : Describe the process you would engage to create a vision for the organization and how you would get employees involved in that vision.

Regarding the attorneys fees : Should the losing party in a civil lawsuit, such as a discrimination claim or personal injury.

Explaining key cultural or organizational legacy : What do you think will be the key cultural or organizational legacy this leader will leave behind?

What types of relationships that exist between tables : What are the differences between relational database models and object-oriented database models? express at least 2 differences at length.

Child of a wealthy family is deciding work mooch off : A child of a wealthy family is deciding either to work or not work also mooch off her parents. Asume that she is offered a job which pays.

Explaining the juvenile system status offender : How would the system handled Juvenile status offender. What would be the the decision of the United State supreme Court.

Explaining the litigation system : advantages and disadvantages of the civil litigation system in the US

Explaining different styles of leadership : What is a leadership style? What are the different styles of leadership and which one would you adopt if you were asked to lead a group?

Descriptions of generation x and y : What would be the problems faced by an employer having these employees working alongside employees of older generations?

User Account

All Pages