8. The following table gives hours worked and the welfare payment received.

a. Calculate the missing data in the table, given that the hourly wage is $5 and total income is the sum of the wage payment and the welfare payment.

b. Draw a graph that shows how much total income a worker earns with and without this welfare program. Put the number of hours worked on the horizontal axis and total income on the vertical axis.

c. What is the increase in total income for each additional hour worked without any welfare program? Compare it with the increase in total income for each additional hour worked under the welfare program.

d. How could the welfare program be changed to increase the incentive to work without reducing total income for a full-time worker (40 hours per week, 50 weeks per year, $5 per hour) below $12,000, which is already below the poverty line for a family of four?

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Hours Worked Wage Payment Welfare Payment Total Income 0 $10,000 500 1,000 1,500 $ 8,000 $6,000 $4,000 2,000 $ 2,000