Describe time cost of working alters of budget constraint, Basic Statistics

Suppose that an individual has unearned income of $V and can choose how many hours she works per week at a wage of $w per hour.  Assume that she has a total of 110 hours of time to allocate between work and leisure (i.e., Hmax = 110).  Her utility depends on leisure (H) and available consumption (Y).

a.  Draw a diagram representing her budget constraint and illustrating her optimal choice of leisure and consumption.  Make sure she chooses to supply a strictly positive amount of labour.

b.  Suppose that her employer relocates to a new establishment that is some distance from her residence.  As a result, if she works she must spend 5 hours per week commuting to the job, regardless of the number of hours she chooses to work.  Commuting time does not affect her utility but it does reduce the time available for work and leisure.  Draw a diagram that illustrates how this time cost of working alters her budget constraint.  Describe how it will affect her optimal choice.

c.  Suppose that her employer had not relocated, but instead required her to rent a uniform and renting that uniform cost $R per week, regardless of how many hours she works.  Illustrate how this would affect her budget constraint.  What happens to her optimal choice?

 

Posted Date: 3/20/2013 4:17:03 AM | Location : United States







Related Discussions:- Describe time cost of working alters of budget constraint, Assignment Help, Ask Question on Describe time cost of working alters of budget constraint, Get Answer, Expert's Help, Describe time cost of working alters of budget constraint Discussions

Write discussion on Describe time cost of working alters of budget constraint
Your posts are moderated
Related Questions
Amount to be provided for retirement of long-term obligations An “other debit” common journal value used in the General Long-Term Bills Additional Consideration that symbolizes t

A survey was conducted among the residents of Pune City, its suburbs and the Pune Cantonment area. The following three pie diagrams show their respective preferences for living in

I am using chi squared statistic on a 10 point Likert scale. I am then trying to analyses if there is any difference between two groups of respondents....male and female. How do Ic

For this second assignment you will have to use the OECD database to investigate possible changes in the policy preferences of Western welfare states. You have to develop (i) an in

2. Two disks, each of radius 10.0 cm, are charged so that one has a charge of +10.0 nC and the other has a charge of -10.0 nC. The disks are then placed with their flat faces facin


LINEAR POWER SUPPLY (JPG) The Goodwill GPC3030D power supply is an example of a linear power supply. Discoveries that were made in researching this power supply are things such

As part of a study of corporate employees, the Director of Human Resources for PNC wants to compare the distance travelled to work by employees at their office in downtown Edmonton

The study of radioactive disintegrations indicates the emission of alpha, beta and gamma particles/rays to be of nuclear origin. Further, study of artificial radioactivity has reve

I have a regression analysis assignment using minicab, but I am not sue how to do with my current data set?