3. Suppose there is a country with one household who cares only about consumption of...
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3. Suppose there is a country with one household who cares only about consumption of a final good (shoes) and leisure. The household has h = 100 units of time which can be split between working and leisure. The household receives a real wage equal to w for each unit of time it works. The household receives dividends from its ownership of a firm equal to T. The household's preferences over consumption of shoes and leisure is given by the following utility func- tion: u(C, 2) = 100 In(C) +, where C > 0 denotes household consumption of shoes and 0 0 denotes household consumption of shoes and 0
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