This paper concentrates on the primary theme of A CONSUMER WITH UTILITY FUNCTION U = Y ½ HAS TO CHOOSE BETWEEN A JOB THAT PROVIDES INCOME Y 0 BUT… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
A consumer with utility function U = Y½ has to choose between a job that provides income Y0but no possibility of evading tax and a job that pays Y1 but makes evasion possible. What value of Y1 makes the consumer indifferent between these two jobs? How does a change in the tax rate affect this level of income?