Using the table above, and assuming no bequest, what amount of ...

[madam-professor]

Using the table above, and assuming no bequest, what amount of consumption is chosen in period 1, if the consumer wants consumption in the two periods to be equal?
 
  If initial wealth is 40,000, what amount of consumption is equal over the two periods?

Question 2

The marginal product of labor (MPL) measures ________.
 
  A) by how much labor increases for each additional unit of output
  B) by how much labor increases for each additional unit of capital
  C) by how much total factor productivity increases for each additional unit of labor
  D) by how much labor increases for each additional unit of productivity
  E) by how much output increases for each additional unit of labor

[JaynaD87]

Answer to Question 1

Use equation (2), setting = - 34,902; 45,098

Answer to Question 2

E

[madam-professor]

Excellent

[tkempin]

TYSM