Assignment2

Assignment2 - Econ 102 Roger E A Farmer Fall 2008...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 102 Roger E A Farmer Fall 2008 Assignment for Second TA Session 1. John Brown owns a car worth $20,000 and a bank account worth $2,000. John lent his wife, Joan, $17,000. Joan owns a car worth $11,000 and jewelry worth $2,000. Between them, John and Joan own a house worth $100,000 and have a mortgage equal to $90,000. Joan has a bank account worth $1,000 and credit debts of $700. Using this information, prepare a balance sheet for John, for Joan and for the Brown family. (You may assume that the house and the mortgage are apportioned equally between John and Joan.) 2. Prepare a balance sheet for your own situation. Include physical assets e.g. car, stereo, books and any other physical commodities as assets. Include financial assets (bank account etc) and liabilities (student loan etc). What is your net worth? 3. A representative household has utility function () 2 48 UC L =− where C is consumption, L is labor supply and 48 is the household’s endowment of time each day. The representative household has access to the following technology to produce output ( ) YA LfL ==
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/30/2009 for the course ECON 102 taught by Professor Serra during the Fall '08 term at UCLA.

Page1 / 2

Assignment2 - Econ 102 Roger E A Farmer Fall 2008...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online