Econ~~!! URGENT!!!

1. A worker values her leisure at $7 per hour. If she is unemployed she receives $9
per hour in unemployment benefits. If she is hired to work on a public project
she will be paid $18 per hour (and will forfeit her unemployment benefit). What
is:
a. The social opportunity cost of an hour of her time (the cost which would be
entered in an efficiency benefit-cost analysis)? [1 mark]
b. The private opportunity cost of an hour of her time (the wage she would
have to be paid to induce her to accept a job)? [1 mark]
c. The total employment benefit per hour that would be entered in the
referent group net benefit account if she was employed on a public
project? [1 mark]
d. The division of the hourly employment benefit between the worker and the
government? [2 marks]


2. A foreign firm is considering a project in a developing country which has, at
market prices and before tax, a present value of benefits of $1,450 and a
present value of input costs of $955. If the project goes ahead, the firm would
pay tax of $97 (present value) to the developing country!¡¥s government. The
project would employ domestic labour which would otherwise be unemployed
and pay them wage with a present value of $715 (the wage bill is included in
the $955 input costs referred to above). The opportunity cost of unemployed
labour is 75% of the market wage. The project will create both negative
(pollution) and positive externalities (accumulation of new labour skills) to the
economy, which have present values of 345 and 128, respectively.
Assuming that the owners of the foreign firm are not part of the referent group,
what are the net present values generated by:
a. The project benefit-cost analysis; [1 mark]
b. The private benefit-cost analysis; [1 mark]
c. The efficiency benefit-cost analysis; [1 mark]
d. The aggregate referent group benefit-cost analysis; [1 mark]

  1. 👍 0
  2. 👎 0
  3. 👁 75
asked by zhuie

Respond to this Question

First Name

Your Response

Similar Questions

  1. Please look! Econ. question

    Suppose the preferences of the individual change in such a way that the individual requires now to be compensated to forgo one hour of leisure and be as satisfied as before.. im not sure what this means!! does it mean, the worker

    asked by tofu on February 5, 2007
  2. Social Studies

    How does the limited leisure time of consumers affect their purchasing habits? A. They value leisure time more than buying products B. They choose the best value of leisure activities and products C. They seek lower-cost products

    asked by Embershy on October 19, 2016
  3. algebra

    Worker efficiency. In a study of worker efficiency at Wong Laboratories it was found that the number of components assembled per hour by the average worker t hours after starting work could be modeled by the formula

    asked by Sandra on July 13, 2009
  4. math

    Find the pay P Ken receives for a 49-hour week if the pay x he receives for 40 hours is $180 and the pay y for each additional hour is $6.75. Use P = x + 9y.

    asked by vinci on July 16, 2013
  5. Economics - PPF

    Points on the graph: A(4,140) B(12,120) C(8,100) D(14,80) E(8,60) a) According to the PPF, Person A has ___ hours to allocate between work and leisure. b) Between points C and E, the opportunity cost of earning an additional $10

    asked by Anonymous on September 25, 2009
  6. Business Statistics

    The Bureau of Labor Statistics’ American Time Use Survey showed that the amount of time spent using a computer for leisure varied greatly by age. Individuals age 75 and over averaged 0.30 hour (18 minutes) per day using a

    asked by Kim on May 5, 2015
  7. Econ

    Label whether it is a labor force employed unemployed or not part of labor force A factory worker gets hurt receives disability and now stays at home living off of that payment Labor force employed A stay at home mom helps run the

    asked by Anonymous on September 24, 2018
  8. Math

    A worker can complete the assembly of 12 tape players in 4 hours. At this rate, how many can the worker complete in a 40 hour work week ?

    asked by Megan on December 10, 2015
  9. Statistics

    90% of population is unemployed. Assume 10 employable people are to be selected randomly. what is the expected number of those unemployed.

    asked by Benjamin on December 16, 2015
  10. Math

    A food service worker earns $12 per hour. How much money ,m, does the worker earn on a shift of h hours? What are the answer to these to problems. Dependent variable ——————— Independent variable

    asked by Kenneth hoon on February 18, 2016

More Similar Questions