Describe is labor supply positively sloped

Reference no: EM13221907

U(Y, l) = Y^1/2 l^1/2, where Y= income, l= leisure hours, w= wage rate, price of Y =$1, NL is non-wage income and T is the maximum number of hours available. Let ‘t' be the tax rate on the hourly wage rate, so the effective wage rate is w(1-t) = w*. a: Set up the optimisation problem and derive the utility maximising level of ‘l' and labour supply [ LS = T - l]. You must express Ls in terms of w, t, T and NL. Is labor supply positively sloped?

Reference no: EM13221907

Questions Cloud

Define what is the mole fraction of naphthalene : If a solution is made of naphthalene in heptane and has a vapor pressure of 82 torr, what is the mole fraction of naphthalene? Assume ideal solution behavior.

How do norms affect the behavior of team members : How do norms affect the behavior of team members?

What strengths and weaknesses do traditional organizational : What strengths and weaknesses do traditional organizational structures provide? How do boundaryless and learning organizations impact strategic capability in a global environment?

Compute the vapor pressure of the pure liquids : The vapor pressure of the pure liquids at 25°C are 451 torr for pentane and 321 torr for cyclopentane. Assume that the solution is an ideal solution.

Describe is labor supply positively sloped : U(Y, l) = Y^1/2 l^1/2, where Y= income, l= leisure hours, w= wage rate, price of Y =$1, NL is non-wage income and T is the maximum number of hours available. Let ‘t' be the tax rate on the hourly wage rate, so the effective wage rate is w(1-t) = w..

Select one commandment of implementing change : Select one commandment of implementing change. What is its impact on the ability of an organization to respond rapidly to market conditions?

Compare and contrast large-scale change techniques : Compare and contrast large-scale change techniques with the traditional guiding coalition approach. What are the strengths and weaknesses of each?

Formulate a growth strategy : Most organizations have or need to formulate a growth strategy. What are the different ways to do so? Provide specific examples of companies that have utilized these different ways.

A plan for identifying source of infection and prevention : What is the normal habitat of this gram-negative, facultatively anaerobic, non-endospore-forming, lactose-positive rod?

User Account

All Pages