Consider three scenarios. In each, your neighbor offers to pay $500 if you will clear brush out of his backyard this week.

Scenario 1: If you decline the offer, you can collect $200 in unemployment benefits this week. If you accept the offer, you get to keep the entire $500 without having to pay taxes on it.

Scenario 2: If you decline the offer, you can collect $100 in unemployment benefits this week. If you accept the offer, you must pay $100 in income taxes out of your earnings from work.

Scenario 3: If you decline the offer, you collect no unemployment benefits. If you accept the offer, you must pay $200 in income taxes out of your earnings from work.

What is the net monetary gain from working in each of these three scenarios? How, if at all, do your incentives change between scenarios? Explain briefly.