The Problem the Individual Solves to Derive the Labor Supply $\max _ { c , L } U ( c , L ) = \log c - 1 / 2 \frac { 1 } { \bar { \ell } } L ^ { 1 / 3 } \text { subject to } c + \bar { S } = w L$

question 94

Multiple Choice

The problem the individual solves to derive the labor supply is:

• A) \(\max _ { c , L } U ( c , L ) = \log c - 1 / 2 \frac { 1 } { \bar { \ell } } L ^ { 1 / 3 } \text { subject to } c + \bar { S } = w L\)
• B) \(\max _ { c _ { \text {tody } } c _ { \text {farr } } } U \left( c _ { \text {toduy } } c _ { \text {future } } \right) = \log c _ { \text {today } } + \beta \log c _ { \text {future } } \text { subject toc } c _ { \text {today } } + \frac { c _ { \text {future } } } { 1 + R } = \bar { W }\)
• C) \(\max _ { c }U ( c ) = \log c \text { subject to } P c = w L\)
• D) \(\max _ { c , t } U ( c , \bar { \ell } ) = \alpha \cdot \log c + ( 1 - \alpha ) \cdot \bar { \ell } \text { subject to } c - w \bar { \ell } = w L\)
• E) \(\max _ { k , L } U ( K , L ) = \bar { A } K ^ { \frac { 1 } { 3 } } L ^ { \frac { 2 } { 3 } } \text { subject to } C = r K + w L\)

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Definitions:

Induction

A disciplinary technique in which the parent tries to get the child to understand why a certain behavior was wrong. Listening, not lecturing, is crucial.

Bullying

A form of aggressive behavior characterized by repeated acts of physical, verbal, or social harm intended to intimidate, harm, or ostracize another individual.

Instrumental

Pertaining to actions or tools designed to achieve a specific purpose or carry out a particular function.

Reactive

The tendency to respond to stimuli or situations in a manner dictated by the stimuli themselves rather than initiating proactive actions.