Question

A maximizing worker has preferences u(z, f) = z1/2f1/2. She has been offered a job paying...

A maximizing worker has preferences u(z, f) = z1/2f1/2. She has been offered a job paying a wage of 5 dollars an hour. Her parents are concerned that she will over work, after all she is only 15. They plan to reduce her non-labour income (allowance) to a level where she will work only 4 hours per day. What is the appropriate level to allowance to achieve this goal.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A maximizing worker with u(z, f) = z1/2f1/2 earns 60 dollars per day in non-labour income...
A maximizing worker with u(z, f) = z1/2f1/2 earns 60 dollars per day in non-labour income and is paid a wage of 5 dollars per hour. How many hours will she work. If she joins a union she will be paid a wage of 20 dollars per hour but she will have to pay a membership fee. What is the maximum daily fee she would pay to join this union?
A maximizing worker with u(z, f) = z1/2f1/2 earns 60 dollars per day in non-labour income...
A maximizing worker with u(z, f) = z1/2f1/2 earns 60 dollars per day in non-labour income and is paid a wage of 5 dollars per hour. How many hours will she work. If she joins a union she will be paid a wage of 20 dollars per hour but she will have to pay a membership fee. What is the maximum daily fee she would pay to join this union?
A maximizing worker is paid a wage of 10 dollars per hour and a non-labour salary...
A maximizing worker is paid a wage of 10 dollars per hour and a non-labour salary of 160 dollars per day. She has preferences for leisure and food defined by u(z, f) = z1/2f1/2. How many hours will she work?
Julie employs Katrina as her assistant. Katrina is a utility maximizing worker with u(z, f) =...
Julie employs Katrina as her assistant. Katrina is a utility maximizing worker with u(z, f) = z1/2f1/2 and MRS = f/z. Katrina has non-labour income 40 and allocates 24 hours per day between labour h and leisure z. Julie pays Katrina a wage of 5 dollar per hour. Provide an Indifference Curve and Budget Line Diagram to illustrate and quantify, hours of leisure, hours of work and consumption. Katrina is over working. What hourly wage would make Katrina voluntarily cut...
Suppose that a worker’s utility (i.e., preferences) with respect to total income (Y) and hours of...
Suppose that a worker’s utility (i.e., preferences) with respect to total income (Y) and hours of leisure time per week (LT) can be represented by the following Cobb-Douglas utility function: U = Y0.4 ∙ LT0.6 (note: A=1; α=0.4; β=0.6) Assume that the market wage is $25 per hour of work (H), and his/her non-labor income is $300 per week. The worker has 70 hours per week to allocate between labor market activity and leisure time (i.e., T = 70). Given...
Jenny has preferences given by the utility function U(C; L) = C 2L so that the...
Jenny has preferences given by the utility function U(C; L) = C 2L so that the slope of her indi§erence curve is C 2L : Johnny has the same preferences we saw in the class example (i.e. U(C; L) = CL so the slope of his indi§erence curve at any point is C L 1.Continuing from the questions on Homework 1, suppose the following Earned Income Tax Credit (EITC) scheme is put in place. For those whose earned income is...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300 cedis as her net salary; she heard that this year’s inflation is at 18%. This situation caused prices to soar so high that she complained about everything she buys. In the previous year she was able to buy herself, dresses, a basket of foodstuffs, a small bag of oranges, a dozen of drinks and her transportation. However, this year, she couldn’t afford the full...
Case study: Working in harmony The job of manager in a business organisation has frequently been...
Case study: Working in harmony The job of manager in a business organisation has frequently been compared to that of a symphony orchestra conductor. Both are concerned with getting each member in the organisation to play his or her part, and to blend each contribution into a team that works together productively and harmoniously. In order to produce the highest quality of music for its listeners, the San Francisco Symphony Orchestra (with more than 100 musicians) gives considerable attention to...
PART 2 CASE ETHICAL CHOICES IN EMPLOYEE DISCOUNTS Angela is feeling a lot of stress at...
PART 2 CASE ETHICAL CHOICES IN EMPLOYEE DISCOUNTS Angela is feeling a lot of stress at work these days and she’s worried that her behaviour over the past few months will get her into trouble, not only with her boss and the company she works for, but also potentially with the police. It all started a few months ago, when one of Angela’s old classmates came in to the store where she worked. Her classmate explained that she was just...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT