a) Draw on a single well-labelled diagram, two cases to show how optimal allocation changes when...

 

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a) Draw on a single well-labelled diagram, two cases to show how optimal allocation changes when Angela is a slave and when Angela is a tenant on the land owned by Bruno. (10 marks) b) Suppose Angela belongs to a low-income working class household. On a new diagram, draw Angela's reservation indifference curve and identify her wage and hours worked. (5 marks) c) Let's change the rules of the scenario and assume that Angela is actually a rich industrialist for a farmer. Show her reservation indifference curve and identify her wage and hours worked. (5 marks) d) Are the number of hours worked in part a) and part b) the same? What specific assumption(s) about preferences is this outcome based on, and does it make intuitive sense? (10 marks) e) Imagine the poor and rich versions of Angela are fresh UCLA graduates with CGPA of 3.89, and are both applying for the same job position. Who do you think should get the job and why? (5 marks) a) Draw on a single well-labelled diagram, two cases to show how optimal allocation changes when Angela is a slave and when Angela is a tenant on the land owned by Bruno. (10 marks) b) Suppose Angela belongs to a low-income working class household. On a new diagram, draw Angela's reservation indifference curve and identify her wage and hours worked. (5 marks) c) Let's change the rules of the scenario and assume that Angela is actually a rich industrialist for a farmer. Show her reservation indifference curve and identify her wage and hours worked. (5 marks) d) Are the number of hours worked in part a) and part b) the same? What specific assumption(s) about preferences is this outcome based on, and does it make intuitive sense? (10 marks) e) Imagine the poor and rich versions of Angela are fresh UCLA graduates with CGPA of 3.89, and are both applying for the same job position. Who do you think should get the job and why? (5 marks)

Answer rating: 100% (QA)

a When Angela is a slave her optimal allocation is at point A on the diagram below where her indifference curve is tangent to the production possibility frontier PPF of the land owned by Bruno At this ... View the full answer