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Figure shows the combined production function of Angela and Bruno.
If the government introduces a new social welfare program to cater to the poor of the society, wherein the reservation wage increases from 2 bushels of wheat to 6 bushels of wheat how would you model the situation? Draw a new diagram to show the impact of this welfare program and comment on who do you think would benefit from this intervention? Additionally, does the outcome of this intervention results in an allocation which is a pareto efficient one? Explain your reasoning.
(Please Make sure your diagram is fully labelled)
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- Hi - I'm confused on isocost lines... I have to draw a diagram with artifical intelligence on the y-axis and human intelligence on the x-axis and draw isocost lines.The president of LeTall University, President John, spends $30 per week on pizzas (qz)and beers (qb). At LeTall Pizza, his go-to pizza joint, pizza costs $3 per slice and beeralso costs $3 per can. Assume fractions of the goods are allowed.(a) Draw President John’s budget line (qb on the horizontal and qz on the vertical axis).(b) President John receives a coupon from LeTall Pizza. The coupon, which will expirein a week, allows him to buy a can of beer at a discounted price of $1 per can. Itis, however, only good for a dozen cans of beer. Draw President John’s budget lineunder the coupon. Label any critical points on the budget line.(c) In another week, LeTall Pizza offers a special deal for pizza. For every half dozenslices of pizza bought during the week, one can get two additional slices for free.Draw President John’s budget line under the special deal. Label any critical pointson the budget line.Using a diagram, draw the outcome of optimal choice using an indi↵erence curve and the individual’s lifetime budget constraint.
- Public schooling is a "take-it-or-leave-it" option. Individuals are not allowed to supplement public education with private lessons. How would the diagram be modified if parents could purchase additional houses of education for their children who are already enrolled in public school? a. No change to the diagram b. The budget constraint shifts to the right and passes point X c. The budget constraint shifts left and passes point c0 d. The indifference curve shifts down and to the left and passes point xConsider a simple economy with two individuals (A and B) and two goods (x and y). Can you please Write down the Pareto efficient conditions for this economy and explain thefirst fundamental theorem of welfare economics?Which of the following is an example of a positiveexternality?a. Dev mows Myra’s lawn and is paid $100 for theservice.b. Dev’s lawnmower emits smoke that Myra’sneighbor Xavier has to breathe.c. Myra’s newly cut lawn makes her neighborhoodmore attractive.d. Myra’s neighbor Xavier offers to pay her if shekeeps her lawn well groomed.
- In what sense is economics like a science? • Draw a productionpossibilities frontier for a society that produces food and clothing. Showan efficient point, an inefficient point, and an infeasible point. Show theeffects of a drought. • Define microeconomics and macroeconohdics.Draw a new the Edgeworth box for second fundamental theorem of welfare economoics, and describe all its elements. Please do not use the existing one in Bartleby, please answer fast.Julie complains about the extremenoise in the factory. This is one of hygiene factors according to Herzberg Theory. True False Neither of the choices Either of the choices
- Budget Constraints: Sam has an income of $1000 a week from a rental property he owns. Sam also has a job as a legal assistant where he gets paid $50 an hour for the first 50 hours he works. However, he can’t work for more than 50 hours, so for every hour, he works more than 50 he can work as a cashier making 20 an hour. John’s time endowment is 100 hours. a) Draw and label Sam's budget constraint b) What is John’s maximum potential income? c) What is the price/hour of leisure when Sam works fewer than 50 hours, and more than 50 hours/week? Need help for a b c . ThanksSOLVE PART b First and second welfare theorems There are two goods A and B and two inputs K and L. The production functions are Ya=AKaαLa1-α Yb=BKbβLbβ The production functions display the standard properties including constatnt returns to scale A representative household has utility U(ca,cb) where ci is the consumption of good i. The total supply of each factor is fixed. K=Ka+Kb L=La+Lb a) A social planner allocates consumption of both goods and determines production and allocation of inputs. Derive the optimal allocation and demonstrate the marginal rate of substitution is equal to the marginal rate of transformation between the consumption goods. Draw a graph of the production possibility frontier. b) Now assume a maret system i. Households own the labor and capital which is rented to firms. The households face a budget constraint waLa+wbLb+raKa+≥PaCa+PbCb where wi is the real wage paid in industry i and ri is the rental rate in industry i. The total supply of each factor is fixed,…Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 100,000 hours of time to either work or raise children. The wage is $10 per hour. Raising a child takes 10,000 hours of time. a. Make a graph with the budget constraint showing the trade-off between lifetime consumption and number of children. (Ignore the fact that children come only in whole numbers!) Show indifference curves and an optimum choice. b. Suppose the wage increases to $15 per hour. Show how the budget constraint shifts. Using income and substitution effects, discuss the impact of the change on number of children and lifetime consumption. c. We observe that, as societies get richer and wages rise, people typically have fewer children. Is this fact consistent with this model? Explain.