1. Suppose there is an economy with one household who cares only about consumption of a nal good (clocks) and leisure. The household has h = 100. The household's preferences over consumption of clocks and leisure is given by the following utility function: n(C',) = 20 + 5001n(). There is a single rm which makes clocks. The rm uses household labour and a. xed amount of capital equal to K = 16 to produce clocks. The production function for producing clocks is given by Y: ZUVD)'5 (Io-5. Here 2 randomly uctuates between 2;, = 12 and 23 = 15. You will need to use the quadratic formula for this question. (1.D.) (5 points) Suppose the government in this economy can dictate hos.r many hows the household must work and chooses a level of those hours that maximizes the welfare of the householdI taking into account the technology for producing clocks and the total amount of time that the household has. How many hours will the government dictate that the household must work when 2 = 2;, = 12