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Suppose an individual's utility function is () = 1 3 When working, their income is $64,000/year. There is a 10% chance of becoming unemployed If
Suppose an individual's utility function is () = 1 3 When working, their income is $64,000/year. There is a 10% chance of becoming unemployed If they do not have unemployment insurance, their income drops to $0 If they do have unemployment insurance, they pay $3000/year and receive $30,000/year when they are unemployed
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
