Business, 25.11.2020 14:30 vicbar1024

An economist is working for a Wall Street firm 12 hours a day and he makes $400 per hour. He sleeps 6 hours per day and he can spend the rest hours in whatever he wants. He receives an increase in his hourly wage of 25% and he decides to cut back the hours he works to 8 per day to dedicate more time to his family. Required:
a. Show in a graph his initial budget constraint (BC) and his combination of hours at home and market goods before the raise in wage.
b. Show in a graph how the BC changes with the change in hourly wage.
c. Show in a graph his new combination of hours at home and market goods after the raise in wage.
d. Explain with words the difference in the substitution effect and in the income effect in this case. Which effect was larger?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 14:00

Jagjit company designs and builds retaining walls for individual customers. on august 1, there were two jobs in process: job 93 with a beginning balance of $8,650, and job 94 with a beginning balance of $7,270. jagjit applies overhead at the rate of $9 per direct labor hour. direct labor wages average $16 per hour. data on august costs for all jobs are as follows:

Answers: 3

Answer

Business, 22.06.2019 17:00

Explain how can you avoid conflict by adjusting

Answers: 1

Answer

Business, 22.06.2019 19:30

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above

Answers: 2

Answer

Business, 22.06.2019 20:30

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.

Answers: 3

Answer

You know the right answer?

An economist is working for a Wall Street firm 12 hours a day and he makes $400 per hour. He sleeps...

Questions