Question
2. Bucko's utility from consumption and leisure is U(C,L) = C, L . There 100 hours in the week and his hourly wage is $7.
2. Bucko's utility from consumption and leisure isU(C,L) = C, L. There 100 hours in the week and his hourly wage is $7.
A. What is Bucko's optimal amount of consumption and leisure if he receives no non-labour income?
B. Let's say the government implements a welfare policy that paysBto all non-workers and 0$ to all workers, at what value ofBwill Bucko opt out of the labour force in order to go on welfare?
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The Economics of Public Issues
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
19th edition
134018974, 134018973, 9780134020532 , 978-0134018973
