In period t, a parental household (indexed by 2) equipped with human capi earns a labour income of whi, where w > 0 represents a constant wage rate_ household derives utility out of own consumption , the number of childr and their level of human capital h+1 Education is provided by teachers w equipped with the economy's average level of human capital h. Human capit child evolves from one period to another according to ht+1=(e+e)" (hi)* (h²)¹, 0 <1,7 <1 where e > 0 is a constant parameter and e represents the level of educatio
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- The lines on the graph are budget constraints, showing the tradeoff between labor and leisure. Suppose that when the wage changes, an individual chooses to move from point A to another point on the graph. For each of the other points, where would it belong on the backward bending labor supply curve? Backward‑bendingportionVerticalportionUpward‑slopingportion Answer Bank B D F C EExplain how the wage can adjust to balance thesupply and demand for labor while simultaneouslyequaling the value of the marginal product oflabor.What are some of the uses to which labors tandards are put?
- The backward-bending supply curve for labour exists- (A) Only in inflationary conditions doid W (B) Wherever income effect overcomes substitu- tion effect basmob ar C, lagualConsider a Sraffa system that describes production with a surplus. Assume that the whole of the wage is variable. The number of commodities in the system is ?. Some are non-basic commodities. . State the economic meaning of the viability condition and express it mathematically. . Assume that the viability condition is satisfied and the rate of profit is given exogenously at a level that is lower than the maximum rate of profit. Explain, with the help of the relevant theorem, why the solution for prices must be nonnegative. NOTE: You need to use only three equations, one for specifying the numeraire, the second for expressing the final solution of the price equations, and third for expressing the condition for nonnegative prices.In period t, a parental household (indexed by i) equipped with human capital hit earns a labour income of wh^i_t, where w > 0 represents a constant wage rate. This household derives utility out of own consumption c^i_t, the number of children nit and their level of human capital h^i_(t+1). Education is provided by teachers who are equipped with the economy’s average level of human capital h^T_t . Human capital per child evolves from one period to another according to h^i_(t+1) =(e^i_t +e ̄)^η(h^i_t)^τ(h^T_t )^(1−τ), 0 < η, τ < 1 (1) where e ̄ > 0 is a constant parameter and e^i_t represents the level of education per child.The households’ utility function is specified as U_t^i = ln(c^i_t) + γ[ln(n^i_t) + βln(h^i_(t+1))] (2) with γ,β > 0.Raising one child to adulthood requires a share of 0 < z < 1 units of time. Moreover, education is subsidised at a rate 0 ≤ s_e < 1, such that education costs per child amount to wh^T_t e^i_t(1 − s_e). Let’s define a…
- In period t, a parental household (indexed by i) equipped with human capital hit earns a labour income of wh^i_t, where w > 0 represents a constant wage rate. This household derives utility out of own consumption c^i_t, the number of children nit and their level of human capital h^i_(t+1). Education is provided by teachers who are equipped with the economy’s average level of human capital h^T_t . Human capital per child evolves from one period to another according to h^i_(t+1) =(e^i_t +e ̄)^η(h^i_t)^τ(h^T_t )^(1−τ), 0 < η, τ < 1 (1) where e ̄ > 0 is a constant parameter and e^i_t represents the level of education per child.The households’ utility function is specified as U_t^i = ln(c^i_t) + γ[ln(n^i_t) + βln(h^i_(t+1))] (2) with γ,β > 0.Raising one child to adulthood requires a share of 0 < z < 1 units of time. Moreover, education is subsidised at a rate 0 ≤ s_e < 1, such that education costs per child amount to wh^T_t e^i_t(1 − s_e). Solve household i’s…nent 6 from Chapter 8 Saved Help Save & Exit Submit High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of Chairs Produced Workers Per Hour B:13 1 10 18 24 28 30 For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70? es Multiple Choice 1 MacBook Pro 3. 234 5Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?
- Q.1.20 An upward-sloping labour supply curve illustrates that ceteris paribus; (a) the quantity of labour supplied and the hours of work per week aredirectly related.(b) the quantity of labour supplied and the price of labour used to produceoutput are inversely related.(c) individuals use higher income to buy back leisure time.(d) a greater quantity of labour would be supplied at higher wage rates .Q.1.17 Marginal cost is defined by: (a) total cost increases when one more unit is produced.(b) fixed cost increases when one more unit is produced.(c) Total revenue increases when one more unit is produced.(d) average cost increases when one more unit is produced.what factor determine movement along demand curve for labour and increase or decrease in it? why theory of distribution is special case of the theory of pricee?Suppose we have a produ ction function for wheat Q = KL - 0.8K2 - 0.212 A. Given K = 10 Units, calculate the level of labourth at the AP reaches max andh ow Much wheatis produced at that point B. Given K = 10 at what level of labour outputreaches maximum C. How mu ch Ilevel of labor should the company hire in order to be efficient |