Answers to HW1 Jenny's utility function is: U (C , L) = C L , Johnny's utility function is: U (C , L) = CL
The slope of Jenny's indifference curve is: -C/2L; The slope of Johnny's indifference curve is: -C/L 1). Jenny has relative stronger prefere
ACEO370 Homework on Labor Supply
Jenny has preferences given by the utility function U (C; L) = C 2 L so that C the slope of her indierence curve is : Johnny has the same preferences 2L we saw in the class example (i.e. U (C; L) = CL so the
Instructions: Answer 2 of the following 3 questions. Provide diagrams and explain your answers. (1) Freddie has preferences given by the utility function U(C, L) = CL C so that the slope of his indifference curve
Instructions: Answer 2 of the following 3 questions. Provide diagrams and explain your answers.
(1) How does a .rm determine its optimal level of employment in the shortrun? Show how this can be used to derive t
Introduction to Labor Supply
Men: labor force participation rates declined from 84% in
1948 to 64% in 2012.
Women: labor force participation rates rose from 31% in
1948 to 53% in 2012.
Hours worked fell from 40
INTRODUCTION TO LABOR
Why Study Labor Economics ?
Human resources allocate substantial time and
energy to labor markets.
Labor economics studies how labor markets work.
Labor economics helps us understand and address
ECO 370 Labor economics
Homework 1 (60 points)
Due date: Jun 1, 2016
Directions: Complete all problems. All answers must be justifiedthis means that you must show
your calculations and give explanations for any answers. Simple yes or no answers are not
Important Stuff for Midterm Exam Oct. 20, 2015
Chapter 2, labor supply
Calculation of labor force participation, unemployment rate, employment rate, as well as trends in labor
force participation rates.
Construction of indifference curves and budget lines