Number of hours he would like to have for leisure

Assignment Help Macroeconomics
Reference no: EM131239300

Terry's utility function over leisure (L) and other goods (Y)is U(L, Y) = Y + LY. The associated marginal utilities areMUy = 1 +Land MUL = Y. He purchases other goods at aprice of $1, out of the income he earns from working. Showthat, no matter what Terry's wage rate, the optimal number ofhours of leisure that he consumes is always the same. What is the number of hours he would like to have for leisure?

Reference no: EM131239300

Questions Cloud

Discuss chemical properties of relevant to the incident : Identification of the hazardous material(s) involved and hazardous classification, discussion of chemical properties and interactions relevant to the incident/project, any short or long-term mitigation implemented.
The economy is beginning to slip into a recession : The economy is beginning to slip into a recession.? Further, data indicate that inflation is low. The Fed will most likely respond to this state of the economy by
Case scenario between marginal revenue-total revenue : What is the best case scenario between Marginal Revenue and Total Revenue? Do we want Total Revenue to be maximized and Marginal Revenue to be equal to zero or do we want Total Revenue to be rising and Marginal Revenue to be positive?
What is the social construction of reality : Define social class? How is social class determined? How is social class used in the film? How many social classes can you identify in the film? (Ask yourself if I would really ask the question if the answer is really two!) How are the classes dis..
Number of hours he would like to have for leisure : Showthat, no matter what Terry's wage rate, the optimal number ofhours of leisure that he consumes is always the same. What is the number of hours he would like to have for leisure?
Complete the given three reactions : Complete the three reactions shown below that are taking place throughout the experiment. pleas balance them. Li2CO3+ H3C6H5O7 →, Na2CO3+ H3C6H5O7 → and K2CO3+ H3C6H5O7 →.
Exact real interest rate : Suppose that John lent $2000 to a friend in 2010 and charges his friend a nominal interest rate of 15% (the loan is repaid in 2011). We measure John's real wealth in terms of one good: hotdogs. The price of each hotdog is $25 in 2010 and $30 in 20..
Equilibrium conditions for competitive firm and the monopoly : Suppose that c=0, the discount factor is ρ (rho), and demand is constant elasticity, y = p^-η. Write the equilibrium conditions for the competitive firm and the monopoly in this case. For the monopoly equilibrium condition to be sensible, what restri..
Diagrammatically-algebraically cases of unitary elasticity : Show diagrammatically and algebraically cases of unitary elasticity, as discussed in class. Connect these with pertinent examples involving products and services.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  In which city is the hotel room cheaper

By how much and in which city is the hotel room cheaper.

  Determining the aggregate supply and aggregate demand

Answer the following problem from the chapter on Aggregate Supply and Aggregate Demand: Based on our discussion in class, use the AS-AD model to graph the following issues with economic growth and instability:

  Analyze the work-incentive effects of the change in benefits

Suppose that benefit rules are changed so those disabled workers who take jobs that pay less than $X per day receive a benefit that brings their total daily income (earnings plus the DI benefit) up to $X. analyze the work-incentive effects of the c..

  Which models predicts price stability in oligopoly

Consider cartel pricing, the price leadership model, and the kinked demand curve model. Which of these three models predicts price stability in oligopoly and which predict price instability, that is, unpredictable ups and downs in the level of pri..

  The major problems caused by a large national debt

What is the major problems caused by a large national debt.It is does not allow small investments by private individuals or else.

  What is the leverage adjusted duration gap of financial

Verify your answer to part (c) by calculating the change in the market value of equity assuming that the relative change in all market interest rates is an increase of 30 basis points.

  What policies are needed to achieve the target

List the arguments on each side of this debate. What are the strongest two arguments on each side? What policies are needed to achieve this target? What do you recommend?

  Phenomena on the world market for loanable funds

Illustrate the effect of these phenomena on the world market for loanable funds. Which way does this argument predict the interest rate to adjust?

  Which distribution is more unequal based on the figures

Note that the first set of numbers represents the various incomes; whereas the second set of numbers represents the number of people earning each of these incomes. For example, in Avataria there are 50 people with the income of $100, 25 people wit..

  Calculating the lower interest rates

The Fed's main tool to accomplish this is through open-market operations. What does the Fed do when it engages in open-market operations? What specific actions would the Fed take to lower interest rates? How would these actions accomplish the go..

  Describe the conditions to raise or lower the revenue

The university has been struggling in recent years, so they have hired you to help them in their last attempt to find an appropriate solution so that the university can survive

  Birthday in a particular country

The percentage of children who die before their first birthday in a particular country?

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