a. If she works 10 hours, how much are her earnings, how much is her welfare benefit, and how much is her income? b. After Elizabeth works a certain number of hours, she does not receive any benefit at all. What is that number of hours? c. Use your answer to parts a and b to plot her budget constraint. d. Sketch a set of indifference curves consis- tent with Elizabeth's participating in the labor market.
a. If she works 10 hours, how much are her earnings, how much is her welfare benefit, and how much is her income? b. After Elizabeth works a certain number of hours, she does not receive any benefit at all. What is that number of hours? c. Use your answer to parts a and b to plot her budget constraint. d. Sketch a set of indifference curves consis- tent with Elizabeth's participating in the labor market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![In California, a welfare recipient can earn $225
per month without having her benefits reduced.
Beyond $225, benefits are reduced by 50 cents
for every dollar of earnings. Consider Elizabeth,
a resident of California, who can earn $10 per
hour. If she does not work at all, she is eligible
for welfare benefits of $645.
a. If she works 10 hours, how much are her
earnings, how much is her welfare benefit,
and how much is her income?
b. After Elizabeth works a certain number of
hours, she does not receive any benefit at
all. What is that number of hours?
c. Use your answer to parts a and b to plot her
budget constraint.
d. Sketch a set of indifference curves consis-
tent with Elizabeth's participating in the
labor market.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07a5608b-6d33-4c63-b694-46c9ae7b5e4d%2F8066e50c-2762-45c5-a982-766551ab2d41%2Fn502bb_processed.png&w=3840&q=75)
Transcribed Image Text:In California, a welfare recipient can earn $225
per month without having her benefits reduced.
Beyond $225, benefits are reduced by 50 cents
for every dollar of earnings. Consider Elizabeth,
a resident of California, who can earn $10 per
hour. If she does not work at all, she is eligible
for welfare benefits of $645.
a. If she works 10 hours, how much are her
earnings, how much is her welfare benefit,
and how much is her income?
b. After Elizabeth works a certain number of
hours, she does not receive any benefit at
all. What is that number of hours?
c. Use your answer to parts a and b to plot her
budget constraint.
d. Sketch a set of indifference curves consis-
tent with Elizabeth's participating in the
labor market.
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