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a. Consider the labor-leisure budget constraint that this person faces in a situation without government assistance.

Suppose that this person spends `2` hours on leisure. How many hours then is she working?

a.



b. Consider the labor-leisure budget constraint that this person faces in a situation without government assistance.

What is the wage rate (how much does this person earn per hour)?

b.



c. Consider the labor-leisure budget constraint that this person faces in a situation without government assistance.

Suppose that this person spends `2` hours on leisure. What is her income?

c.



d. Suppose that the hourly wage is `$20`. In addition, suppose that a person has `20` hours in a week to allocate between leisure and labor. Finally, suppose that this person decided to spend `10` hours on leisure.

Given this information, for how many hours does she work?

 



e. Suppose that the hourly wage is `$15`. In addition, suppose that a person has `40` hours to allocate between leisure and labor each week. Finally, suppose that this person decided to spend `8` hours on leisure.

Given this information, what is her income?

 



Suppose that a government antipoverty program guarantees every family with a single mother and two children `$20000` in income. With this program, each time the mother earns `$1,000`, the government will deduct `$1,000` of its support. Suppose that the hourly wage is `$13.25`. Given this data, complete the table:
Amount Worked (hours) Total Earnings Government Support Total Income
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