+1-415-315-9853

info@mywordsolution.com

Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

1. Consider an economy in that George and Harriet consume only ale and bread. Georgeís utility function is UG = aG(bG 1) where aG and bG are his consumption of ale and bread. Harrietís utility function is UH = (aH )2 (bH 1) where aH and bH are her consumption of ale and bread. George is endowed with one unit of ale and one unit of bread. Harriet is endowed with two units of bread but no ale. Using aG as an index, Önd all of the Pareto optimal allocations in which George and Harriet consume positive amounts of both goods.

2. Consider an economy consisting of three people: Frida, George and Har-riet. They consume two goods, ale and bread, and their utility functions are UF = (aF )2 bF UG = (aG 1)(bG 1) UH = aH (bH 1) Frida is endowed with one unit of ale and one unit of bread. George is endowed with two units of bread and no ale. Harriet is endowed with two units of ale and no bread.

(a) Find each agentís best attainable commodity bundle.
(b) Find the market-clearing price.
(c) Find the competitive allocation.
(d) How much of which good does each person sell in the competitive equilibrium? How of much of which good does each person buy in the competitive equilibrium?

3. Alice and Bob survive on hamburgers and salads. Aliceís utility function is UA = hA(sA 1) where hA and sA are her consumption of hamburgers and salads respec- tively. Bobís utility function is UB = (hB 1)2 sB where hB and sB are his consumption of hamburgers and salads respec- tively. Let p be the price of hamburgers measured in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six salads and two hamburgers. Find the competitive equilibrium.

4. An economy is endowed with one unit of ale and one unit of bread. There are two people in the economy, George and Harriet. Georgeís utility func- tion is UG = aG(bG + 1) where aG and bG are his consumption of ale and bread. Harrietís utility function is UH = aH (bH + 1) where aH and bH are her consumption of ale and bread. Show that the allocation (aG; bG; aH ; bH ) = (1=4; 0; 3=4; 1) is Pareto optimal.

Macroeconomics, Economics

• Category:- Macroeconomics
• Reference No.:- M91174
• Price:- \$75

Guranteed 36 Hours Delivery, In Price:- \$75

Have any Question?

Related Questions in Macroeconomics

The government uses policies like student loans and free

The government uses policies like student loans and free trade to influence the economy's growth rate. Write a thoughtful and articulate paper that includes the following: Identify at least four policies from the textboo ...

If the exchange rate between the mexican peso and the us

If the exchange rate between the Mexican peso and the US Dollar expresssed in terms of pesos per dollar is 13.5 pesos=1 dollar, what is the exchange rate when expresses in terms of dollars per peso? Show work

1 watch the dr seuss the sneetches and write down an

1. Watch the Dr Seuss The Sneetches and write down an exhaustive list of the macroeconomic concepts that you observe. 2. Explain each concept in simple terms, providing examples of the favorable things that can happen wh ...

Assignment long-term investment decisionsuse the internet

Assignment: Long-Term Investment Decisions Use the Internet and Strayer databases to research government policies and regulation. Write a six to eight page paper in which you: 1. Outline a plan that managers in the low-c ...

Topic comparing reformation theologiansreview the textbook

Topic: Comparing Reformation Theologians Review the textbook readings, presentations, and lectures notes reflecting on the positions of Martin Luther, John Calvin, and Richard Hooker. Construct your answer into the follo ...

Define the says law and give your interpretationdoes

Define the Say's law and give your interpretation. Does everything have a price? Are there some things you would not do regardless of the price? (Remember: prices and money are not synonyms; prices may be non-monetary.) ...

Establishing a proprietary standard as the industry

Establishing a proprietary standard as the industry standard may require a company to win a format war against a competing and incompatible standard. Strategies for doing this include producing complementary products, le ...

Steve was employed by a temporary employment agency and was

Steve was employed by a temporary employment agency and was assigned to a department store during the Christmas shopping season. While lifting a heavy box, he strained his back and then required medical care and rehabili ...

Discusionyou are the cfo of a us firm whose wholly owned

Discusion You are the CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. O ...

Money and the prices in the long run and open economiesthe

Money and the Prices in the Long Run and Open Economies The organization's strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in product ...

• 13,132 Experts

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen