Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

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

Suppose a treasury bond will mature in 3 years if the bond

Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%? A. $ ...

Macroeconomics is designed to help us better comprehend the

Macroeconomics is designed to help us better comprehend the full nature of the economy on a national scale and how the government is involved (D.Andolfatto, 2008).  Two macroeconomic variables that would affect the busin ...

Explain why 76 years ago the rowell-sirois commission

Explain why, 76 years ago, the Rowell-Sirois Commission argued that: "The quality of education and welfare services is no longer a matter of purely provincial and local concern. In Canada today, freedom of movement and e ...

Assume that the consumption schedule for a private open

Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant ...

1 suppose you are hired to manage a small manufacturing

1. Suppose you are hired to manage a small manufacturing facility that produces Widgets. (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market ...

A perfectly competitive industry consists of ten firms five

A perfectly competitive industry consists of ten firms. Five firms have marginal costs given byMC = q + 1, the other five have marginal costs given by MC = q + 2. The demand curve is D =135 - 5P. Calculate the level of p ...

What is the purpose of the declaration of helsinki discuss

What is the purpose of the Declaration of Helsinki? Discuss considerations when balancing risks, burdens, and benefits of medical research. What is a goal of informed consent? Please contain a minimum of 2-3 peer-reviewe ...

Pick a product or service you use in your everyday life and

Pick a product or service you use in your everyday life and describe the market for this product. For this paper we will use the UBER driving service. Please make sure to address the following questions: 1. What factors ...

The government decides to impose an indirect tax on the

The government decides to impose an indirect tax on the wine of €0.15 per liter. Discuss the consequences of the tax for stakeholders.

Assignment the governments involvement in the private

Assignment: The Government's Involvement In the Private Sector Currently, numerous Americans lack health insurance because they are unable to pay for it. However, the number of people who do not have health insurance is ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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