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Assuming a worker can allocate 16 hours a day between work and leisure. She receives $20 per hour if she works, and wage is her
Assuming a worker can allocate 16 hours a day between work and leisure. She receives $20 per hour if she works, and wage is her only source of income. 1. Draw the budget constraint curve for this worker. Assuming 50 working weeks per year, and 5 working days per week (Label your graph clearly, and label the interception between the budget constraint curve and the y axis and the x axis) 2. The government charges 25% income tax from the wage she receives, and her company deduct this tax. Draw the new budget constraint curve
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