labor-leisure analysis, Microeconomics

Assignment Help:


Joe won $365,000 a year for life in the state lottery. Use a labor-leisure choice analysis to answer the following:

a. Show how Joe’s lottery winnings affect the position of his budget line.

b. Joe’s utility function for goods per pay (Y) and hours of leisure per day (N) is U=Y+240N^0.5. After winning the lottery, does Joe continue to work the same number of hours each day? What is the income effect of Joe’s lottery gains on the amount of goods he buys per day?

Related Discussions:- labor-leisure analysis

Demand supply and price, Ask question # The price of Canadian-grown peaches...

Ask question # The price of Canadian-grown peaches skyrockets during an unusually cold summer that reduces the size of the peach harvest. b. An increase in income leads to an incr

Computers, During the 1990s, technological advance reduced the cost of comp...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Laws of economics, Do the laws of economics still work today? use the case ...

Do the laws of economics still work today? use the case discussed in class to answer this question or any other examples) (ii) Provide examples of three factors that can shift the

Nature, explain nature of microeconomic

explain nature of microeconomic

Gains from international trade, Gains from International Trade: It lea...

Gains from International Trade: It leads to increased total world production of goods and services. International trade based on comparative cost advantage allows countries to

Homework blues, Is it possible to get an expert to check my homework before...

Is it possible to get an expert to check my homework before I submit it?

Game theory, write down the assumotions and importance of game theory

write down the assumotions and importance of game theory

Consumer behaviour, discuss how economic theory of marginal utility explain...

discuss how economic theory of marginal utility explains the optimum pattern of consumption for an individual consumer

Analyze the characteristics of a monopoly market, Question 1: (a) Descr...

Question 1: (a) Describe the three different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standardof a population?

Explain why despite decreases in marginal cost, Problem 1: How can a ma...

Problem 1: How can a manager of a supermarket maximise total revenue using various concepts of elasticity of demand? Use examples to illustrate. Problem 2: What are the

Write Your Message!

Captcha
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