Labour-leisure choice-what is the slope of the budget line

Assignment Help Business Economics

Reference no: EM131096003

Labour-Leisure choice:

a. Suppose that you can work up to 365 days per year and can earn $200 per day for each day you work. Draw a budget line with respect to your labour-leisure choice. What is the slope of the budget line?

b. Suppose that you choose to work 200 days per year. Draw the appropriate indifference curve, and note your equilibrium wage income and labour-leisure choices.

c. Suppose that you are sick ten days per year. Draw the impact of the illness on the equilibrium level in 3b. How will it change your equilibrium allocation of earnings and labour versus leisure?

d. Suppose that you are not sick. Further suppose that your wage rises from $200 to $210 per day. Show how your equilibrium level of income and labour-leisure will change from your answer in 3b.

Reference no: EM131096003

Questions Cloud

How should we go about evaluating them : An effective performance review involves not only quantifiable metrics, but also soft skills. However, since we cannot measure soft skills objectively, how should we go about evaluating them? And what happens when the employee doesn't agree wit..

Draw utility of wealth curve for a risk-averse person : Draw a utility of wealth curve for a risk-averse person. How would the shape differ if the person was not risk-averse (i.e. risk neutral). What are the gains from insurance for the risk neutral person? Show this on your figure.

What are the pros and cons of each from a government : What are the pros and cons of each from a government perspective?

Research regarding the hipaa privacy rule : Then, perform additional research regarding the HIPAA Privacy Rule and prepare your Final Paper by analyzing the issues through these questions in regards to the above scenario:

Labour-leisure choice-what is the slope of the budget line : Labour-Leisure choice

Repository of information describing the data in database : Which of the following descriptions is incorrect? (A)Data dictionary is a repository of information describing the data in the database

Prepare a table that summarizes the total cost : Prepare a table that summarizes the (a) total cost, (b) total market adjustment, and (c) total market value of the portfolio of long-term investments at each year-end.

Draw a graph to illustrate the intended effect : Draw a graph to illustrate the intended effect. Explain why the effect of tax cuts depends on who receives them.

Determine the qualitative forecasting techniques : Assuming the absence of quantitative data, determine the qualitative forecasting techniques that could be used within this scenario. Now, assume you have acquired some time series data that would enable you to make forecasts. Ascertain the quantitati..

User Account

All Pages