The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Move the budget constraint to illustrate the trade off that exists when the individual can earn $25,000 if he/she works 4,000 hours, assuming the individual does not qualify for government support. Assume that the individual only has 4,000 hours to distribute between work and leisure. Provide your answer below: 35000 30000 25000 20000- 15000 (0, 14000) 10000- 5000 (2200, 0) 1000 2000 3000 4000 5000 Leisure (Hours) Income ($)

The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Move the budget constraint to illustrate the trade off that exists when the individual can earn $25,000 if he/she works 4,000 hours, assuming the individual does not qualify for government support. Assume that the individual only has 4,000 hours to distribute between work and leisure. Provide your answer below: 35000 30000 25000 20000- 15000 (0, 14000) 10000- 5000 (2200, 0) 1000 2000 3000 4000 5000 Leisure (Hours) Income ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a government program guarantees $ 2,000 a month in income, even for those who do not work at all. However, if the recipient earns income by working, the benefit is reduced by 50 cents for each $1 earned. Which of the following statements is true? This program will redefine the proverty line. While the goal may be to reduce poverty, people rarely respond to incentives. This program will reduce the incentive to work significantly. The goal of this program is to increase the incentive to work, reducing the poverty trap.
Questions and Problems 6. An individual can earn $12 per hour if he or she works. Draw the budget constraints that show the monthly consumption-leisure trade-off under the following three welfare programs. a. The government guarantees $600 per month in income and reduces the benefit by $1 for each $1 of labor income.
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Shen, who is currently unemployed, is a participant in four welfare programs that offer daily benefits of $10 each to people with no earned income. Each program then curtails its benefits by 50 cents for every dollar of income a recipient earns. Shen's identical twin brother, Sean, is enrolled in an experimental negative income tax program that gives him $40/day in benefits and then taxes him at the rate of 50 percent on each dollar of earned income. Now suppose Shen is offered a job that pays $4/hr, the same wage his brother earns. a. Draw the budget constraint for each twin. Instructions: To earn full credit for this graph you must plot all required points for each curve. 1. Use the line tool (Shen's budget constraint, plot 3 points) to draw the Shen's budget constraint. 2. Use the line tool (Sean's budget constraint, plot 2 points) to draw the Sean's budget constraint. After tax-income ($/day) 98 84 70 56 42 28 14 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Leisure (hrs/day) Tools Shen's…
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please label the two questions with the correct answers thank you