Business, 25.02.2020 05:23 Capicus8710
Michele, who has a relatively high income I, has altruistic feelings toward Sofia, who lives in such poverty that she essentially has no income. Suppose Michele's preferences are represented by the utility function U_M(c_M, c_S) = c^1 - alpha_M c^alpha_S where c_M and c_S are Michele and Sofia's consumption levels, appearing as goods in a standard Cobb-Douglas utility function. Assume that Michele can spend her income either on her own or Sofia's consumption (though charitable donations) and that $1 buys a unit of consumption for either (thus, the "prices" of consumption are p_M = p_S = 1). Argue that the exponent alpha can be taken as a measure of the degree of Michele's altruism by providing an interpretation of extreme values of alpha = 0 and alpha = 1. What value would make her a perfect altruist (regarding others the same as oneself)? Solve for Michele's optimal choices and demonstrate how they change with alpha. Suppose that there is an income tax at rate r, i. e. net income now is just (1 - r)I. Solve for Michele's optimal choices under the income tax rate. Now suppose that besides the income tax rate tau, there are charitable deductions, so that income spent on charitable deductions is not taxed. Argue that this amounts to changing the price p_S from $1 to $(1 - tau). Solve for the optimal choices under both the income tax rate and charitable deductions. Does the charitable deduction have a bigger incentive effect on more or less altruistic people?
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Business, 22.06.2019 22:00
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Business, 22.06.2019 22:30
Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area? a. when more people have children, their incomes tend to be higher and the housing prices are also higher. b. older people are more likely to stay in their houses, creating a seller's market that keeps prices low. c. an area with a lower population density won't have enough construction workers to build new houses quickly. d. an area with younger people will have a higher demand for rentals and a lower demand for buying.
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Skathy lee berggren, a professor of oral communication at cornell university, indicates “a lot of my students really [only] scratch the surface with the type of research they’re doing.” according to andy guess, at inside higher ed, “just because students walk in the door as ‘digital natives’, doesn’t mean they’re equipped to handle the heavy lifting of digital databases and proprietary search engines that comprise the bulk of modern, online research techniques.” students erroneously think a google search is research. as you read through the reasons that should stimulate your interest in studying research methods or evaluate the nine factors that guarantee good research, what actions do you propose to narrow the gap between students’ research competence and what’s required of a modern college graduate about to become a manage
Answers: 1
Michele, who has a relatively high income I, has altruistic feelings toward Sofia, who lives in such...
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