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Cara has available h = 3000 hours per year for participating in the labor market and for leisure. She gets a wage w = $18 for the first 2,000 hours of work. If she works more than that, the wage on the additional hours is increased by 50%. She receives dividend income of = 3000 and pays a tax of T = 2000.
(a) Plot her budget constraint.
(b) Cara works 2,200 hours per year. Assuming her choice is optimal, demonstrate on a graph. What is her MRS?
(c) Cara's stocks are doing well and his dividend income went up by $1,000. She chose to work 1,800 hours. It is surprising that a relatively small change in income led to a big change in hours worked. Explain graphically.
A small airline recently sold to a private equity group for $145 million. The airline has earned profits of $9 million last year. The new managers believe they can grow profits at 5% per year. The private equity group borrows money from wealthy indiv..
This might be interpreted as an upward shift in the consumption function. How does this shift affect investment also the interest rate.
q1. explain why wage rates might rise at joes quik print shop. if joe replaces his aging copy machines with state of
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
Which computer software package should the firm's human resources office use to manage the payroll?
Supply and Demand in the Cell Phone Market.
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If we can get foreigners to give us real goods and services and talk them in to taking pieces of paper in return why should we want anything different?" Do you agree or disagree with this statement?
If a company gets rid of a coupon does this shift the demand curve or just move a point on the demand curve.
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suppose demand and supply are given by qd 60 - p and qs 1.0p - 20.a. what are the equilibrium quantity and price in
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
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