11.

Arthur has utility over consumption (c) and leisure (I) that is given by U (C, l) 2 60'5 -l- 4 - ([05) where consumption is measured in dollars and leisure is measured in hours. Eact week, Arthur has 168 hours to devote to either leisure or working. Suppose Arthur is offered a job that pays $12 per hour (such that, if he were to work every hour of the week, he would earn $2,016). If Arthur has no income besides that which he earns from working, his budget constraint over consumption and leisure is cl 121: 2,016 Solve for the levels of consumption and leisure that maximize Arthur's utility subject to his budget constraint. Arthur's utility-maximizing consumption is $ . His utilitymaximizing number of leisure hours is hours. (Enter only numbers in the blanks, and please round to the nearest whole numbers if necessary.) Consider Arthur from the previous question. The utility Arthur receives from his utility-maximizing consumption and leisure choice in the previous question is utils (enter only a number in the blank, and please round to the nearest whole number if necessary). Consider Arthur from the previous questions. Suppose now that Arthur is eligible to receive unemployment insurance in the amount of $400 per week. If he chooses to take it, this insurance can be put toward consumption (c). To collect unemployment insurance, though, Arthur must work zero hours. Given his utility function, the utility Arthur would receive from collecting unemployment insurance and devoting all his time to leisure is utils (enter only a number in the blank, and please round to the nearest whole number if necessary). Given your answers to the previous two questions, Arthur would choose to O collect unemployment insurance as opposed to take the job that pays $12 perhoun 0 take the job that pays $12 per hour as opposed to collect unemployment insurance. Consider Arthur from the previous questions. At (approximately) what level of unemployment insurance would Arthur be indifferent between collecting unemployment insurance and taking the job that pays $12 per hour? 0 $170 per week 0 $205 per week 0 $240 per week 0 $290 per week 0 $330 per week 0 $375 per week 0 $425 per week 0 $460 per week 0 $510 per week 0 $555 per week