Budget Constraints. To answer this question, consider the choice about hours of work PER WEEK.

1. Budget Constraints.To answer this question, consider the choice about hours of work PER WEEK. You can assume total possible hours in the week is 7 days times 16 hours per day, for a total of 112 hours.a. Draw the budget constraint for a worker who has no unearned income, and earns $10 per hour. Identify the slope and intercept of the budget line.b. Now suppose the worker has $60 per week in nonlabor income. The income is constant and does not depend on how many hours she worked.c. Building on (b), suppose that the worker can earn overtime for each hour above 40 hours worked per week. Her base pay remains at $10/hour, but she earns one and one-half time for each hour beyond 40 hours. Draw the new budget constraint.d. Going back to (b) (and with no overtime), suppose that the $60 per week is a guaranteed payment only if total earnings are $200 or less per week. When earnings go over $200, the $60 is lost. Draw the new budget constraint.2. When the Fair Labor Standards Act began to mandate paying 50 percent more for overtime work, many employers tried to avoid it by cutting hourly pay, so that total pay and hours remained the same.a. Assuming that this 50 percent overtime-pay premium is newly required for all work beyond eight hours per day, draw a budget constraint that pictures a strategy of cutting hourly pay so that, at the original hours of work, total earnings remain the same.b. Suppose that an employer initially paid $8 per hour and had a 10-hour workday. What hourly base wage will the employer offer so that the total pay for a 10-hour workday will stay the same?c. Will employees who used to work 10 hours per day want to work more or fewer than 10 hours in the new environment (which includes the new wage rate and the mandatedovertime premium)?

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10