Assume w< 4. Under this assumption, the optimal number of hours of leisure is _. Choose the correct one. 0 1 W This problem considers the decisions of a consumer whose preferences are given by u(C,1)=C+4 lnl, in which C' is the quantity of consumption and I is the quantity of leisure. The consumer faces two constraints. The time constraint is given by 1 + N³ = 1 with NS as the time spent working (or the labor supply). The main advantage of working is the wages consumers receive. Consumers take wages as given (outside of their control) and obtain wage income equal to wN³. The budget constraint is C wNsT, with π as real dividend income and T as the real = lump-sum taxes paid to government.
Assume w< 4. Under this assumption, the optimal number of hours of leisure is _. Choose the correct one. 0 1 W This problem considers the decisions of a consumer whose preferences are given by u(C,1)=C+4 lnl, in which C' is the quantity of consumption and I is the quantity of leisure. The consumer faces two constraints. The time constraint is given by 1 + N³ = 1 with NS as the time spent working (or the labor supply). The main advantage of working is the wages consumers receive. Consumers take wages as given (outside of their control) and obtain wage income equal to wN³. The budget constraint is C wNsT, with π as real dividend income and T as the real = lump-sum taxes paid to government.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
![Assume w< 4. Under this assumption, the optimal number of hours of leisure is _. Choose the
correct one.
0
1
W](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11c3e735-47a2-4be2-bcf0-76944b0744ea%2Fed007e0e-6a58-4437-96b4-859b7922fd7b%2Fzrplkn_processed.png&w=3840&q=75)
Transcribed Image Text:Assume w< 4. Under this assumption, the optimal number of hours of leisure is _. Choose the
correct one.
0
1
W
![This problem considers the decisions of a consumer whose preferences are given
by
u(C,1)=C+4 lnl,
in which C' is the quantity of consumption and I is the quantity of leisure. The consumer faces two
constraints. The time constraint is given by 1 + N³ = 1 with NS as the time spent working (or the
labor supply). The main advantage of working is the wages consumers receive.
Consumers take wages as given (outside of their control) and obtain wage income equal to wN³.
The budget constraint is C wNsT, with π as real dividend income and T as the real
=
lump-sum taxes paid to government.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11c3e735-47a2-4be2-bcf0-76944b0744ea%2Fed007e0e-6a58-4437-96b4-859b7922fd7b%2Fft153om_processed.png&w=3840&q=75)
Transcribed Image Text:This problem considers the decisions of a consumer whose preferences are given
by
u(C,1)=C+4 lnl,
in which C' is the quantity of consumption and I is the quantity of leisure. The consumer faces two
constraints. The time constraint is given by 1 + N³ = 1 with NS as the time spent working (or the
labor supply). The main advantage of working is the wages consumers receive.
Consumers take wages as given (outside of their control) and obtain wage income equal to wN³.
The budget constraint is C wNsT, with π as real dividend income and T as the real
=
lump-sum taxes paid to government.
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