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. Now suppose that a government antipoverty program guarantees every individual a certain level of income. Move the Government Support line to illustrate a situation in which the individual starts making an income higher than the government support income when he/she works more than 2,000 hours (or takes fewer than 1, 000 leisure hours). Provide your answer below:
Introduction:
A budget is a method for balancing income, spending, and financial goals over a certain period of time.
A budget is a spending plan that is based on income and costs. In other words, it's an estimate of how much money you'll make and spend over a specific time period, such as a month or year. (Alternatively, if you account for everyone in your household's receiving and outgoing money, that's a family budget.)
Budgeting might entail creating a full list of expenses or focusing on a few categories. Some people prefer to create their budget by hand, while others use a spreadsheet or budgeting tool. There is no right or wrong method to budget; what works for one person may not work for another.
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