1.5. Consider your decision about how many hours to work. a. Draw your budget constraint assuming that...

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1.5. Consider your decision about how many hours to work.

a. Draw your budget constraint assuming that you pay no taxes on your income. On the same diagram, draw another budget constraint assuming that you pay a 15 percent tax.

b. Show how the tax might lead to more hours of work, fewer hours, or the same number of hours.

Explain.

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Principles Of Economics

ISBN: 9780324168624

3rd Edition

Authors: N. Gregory Mankiw

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