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Q. Consider an economy where, consumer's utility function is given as U(C,L)=C-(1/2)L2 . Where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2.The turnover cost per labor is (0.36)/(w/p)(a) What happens to t as labor increases? Give a clear intuition(b) Write down the firm's maximization problem and solve it. Find real wage, labor.(c) Write down consumer maximization problem and solve it. Derive labor supply curve(d) Find real wage, employment, output and unemployment in this economy.(e) Illustrate the solution graphically using Labor Supply / Labor Demand and Production Function diagrams.Is money neutral in the "Flexible-Wages Monetary Model" ? Why or why not?
Compare the rationale of the Reagan administration for the 1981 tax reductions with the rationale behind the Kennedy-Johnson tax cut of 1964
A cousin of James Darwin, examined the relationship between the height of children and their parents
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Calculate whole expected convenience from each restaurant option and also compare?
Similarities in the definitions of management quoted from authors of management textbooks
The constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
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