In the accompanying diagram, WH is the budget line resulting from labor market work. Describe the characteristics

Question:

In the accompanying diagram, WH is the budget line resulting from labor market work. Describe the characteristics of the income maintenance programs implicit in budget lines HBW€², HBYW, and HBW. Given an individual€™s work€“leisure preferences, which program will entail the strongest disincentives to work? Why? Which entails the weakest disincentives to work? Why? €œThe higher the basic benefit and the higher the benefit reduction rate, the weaker the work incentive.€ Do you agree?

W' B н Hours Income