Leandro has 16 hours per day that he can allocate to work or leisure. his job pays a wage rate of $20. leandro decides to consume 8 hours of leisure. his indifference curves have the usual shape: they slope downward, they do not cross, and they have the characteristic convex shape. (15 points)

draw leandro’s budget constraint for a typical day. then illustrate the indifference curve at his optimal choice.

now leandro’s wage rate falls to $10.

draw leandro’s new budget line.

suppose that leandro now works only 4 hours as a result of his reduced wage rate. illustrate the indifference curve at his new optimal choice.

leandro’s decision to work less as the wage rate falls is the result of a substitution effect and an income effect. which effect is stronger? explain your reasoning.

Afreelance​ singer-songwriter is planning the restoration of a recently purchased civil​ war-era farmhouse. while he professes an enjoyment​ of, and talent in the construction​ trades, the theory of comparative advantage implies that a. the value of what he imports​ (in this​ case, professional contractor​ services) must equal the value of what he exports​ (songs). b. he should concentrate on the restoration work since his​ out-of-pocket costs will be much lower than if he hires professionals. c. ​self-sufficiency is​ advantageous, hence he should split his time between music and construction. d. the income lost while away from music will likely exceed the savings realized by doing the work​ himself, thus, he should hire professionals to do the restoration work. e. he ought to do as much of the work himself as possible since imports​ (in this​ case, professional contractor​ services) should always be restricted to those things that cannot be done internall

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

Atrough in the business cycle occurs when