Answer to Question #175382 in Economics for Sreeshma

Question

Abdul recently got a new job selling artisanal pickles at farmers' markets. He's paid $20 per hour, and works 40 hours a week. He quite enjoys the work, but driving in traffic is a pain, so his average disutility from work is $2 per hour.

a. Suppose that if Abdul loses his job, he is eligible for unemployment. Use the California UI Calculator to calculate his monthly unemployment benefit. You can assume he has been making the same monthly wage since July 2019 and that there are four weeks in a month to make your calculation easier. What is his weekly unemployment benefit amount? (1 points) Using Abdul's weekly unemployment benefit, calculate his hourly employment rent. If you don't remember how to do this, refer to Section 6.5 of our text. An easy way to do this would be to first calculate the weekly unemployment rent and divide by 40.

Answer 1

$$\frac {370}{40}=9.25$$