(1) How many hours will a person allocate to sure activities if her in difference curves between consumption and goods are concave to the origin?
(2) Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20% tax rate and pays $4 per hour in child careexpenses for each hour he works. Tom receives $80 in child support payments each week. There are 168 hours in the week. Graph Tom?sweekly budget line.
3) Among single, college-educated women aged 22-25,average annual hours worked is 2,160 and the average wage is$22.50. If the average wage increases to $25 per hour, average annual hours worked increase to 2,340. What is the elasticity of labor supply for this group of workers?
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