2. We can use the graphical analysis we have developed to look at such issues as
ID: 1142037 • Letter: 2
Question
2. We can use the graphical analysis we have developed to look at such issues as part-time work.
(a) Draw a diagram showing the utility-maximizing choice of income and hours worked for an individual. Let us assume that this diagram is for weekly hours.
(b) Once you have identified the individual's utility-maximizing position (call it Point A), let us assume that firms offer workers their choice of two possible work schedules: B hours of work a week (where B is more hours than A) or no hours of work per week. Identify where the individual will be if he is required to work B hours per week. Will the individual be better off or worse off at Point A?
(c) Suppose some firms begin to offer an alternative to B hours or no hours--fewer hours than B per week, but at a lower wage. Could this make workers who want to work fewer hours than B better off? Draw a diagram to illustrate your answer. Can this explain why part-time workers earn lower hourly wages than full time workers?
-2. We can use dhe graphical analysis we have developed u kok a such issues as parl-Ere wark. a) Draw a diagram showing the utility maximizing choice of income and hours worked for an individual let us Ls ume that this diagramis or weekly hcurs. (b) Onee you have identified the inividual's utility-maximizing pasition (call it Point A), let usassume that tirms offer workers their choicc o two possibie work schedules: B hours of waork a week (where B is more hours than A) or no hours of work per weck. Identily where tho i eek. Will the individual he hetter off ar wure off at Point A? individual will he if he is required to work B haurs per w e (c) Suppose some firms begin to offer an altemative to B hours oe no hours--feaer hours than B per week, bur at a lower wae. Could this make workers who want to work fewer hours than B bener off? Draw a diagram to ilbustrare your answer. Can this explain why part-time workers earn lower hourly wages than full time workers?Explanation / Answer
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.