Consider abled Australians aged 18 to 59, who can earn $40 / hour and have 60 hours available per week for work and leisure. They have no other source of income. Income tax is on every dollar of wage income over $400 at a rate of 25%. In addition, consider that if they can not find work they can receive $380 per week from JobSeeker Payments that are not taxed, but these are clawed back by $0.50 for every $1 in wage income earned. Once wage income exceeds $760 per week, no Job Seeker payments are received and there is no clawback. For example, if they earn $240 in a week, they will lose 0.50 x $240= $120 of their $380 JohSeeker payment and be left with $260. If they earn $760 in a week they will lose all their JobSeeker. payment and also pay ($760 - $400) x 25% = $90 in income tax. Assume that individuals who do not want to work can also receive the JobSeeker Payment even if they could find work, but choose not to take it. This diagram may be useful in answering the following questions. This question continues to examine the same four types of individuals from above. Consider the introduction of a universal basic income (UBI) where all government benefits are eliminated but every adult receives UBI payment weekly which is tax-free. To fund the UBI system the GST will need to rise considerably raising all prices. In real terms the UBI payment will be $540 a week and real wages $30 an hour. Income tax will be levied on all real wage earnings at 50% (there will be no tax-free threshold). You do not need to model the increase in the GST, instead define all amounts in real terms (as given in the question above), such that C, is real $ of consumption per week and wages and reservation wages are in real $ per week. a. Re-calculate the real reservation wage for each of the four worker types and use it to determine which type(s) of workers want to work under a UBI. b. Verify that the mathematical expression for the budget constraint of consumption for leisure L for under the UBI is C = 1440 15L. c. Calculate the optimal choice of leisure and work hours for a type i individual. d. How has the UBI affected the welfare and labour supply decisions of type i individuals. e. Calculate the optimal choice of leisure and work hours for a type ii individual. f. How has the UBI affected the welfare and labour supply decisions of type ii individuals. g. Can you see any issues arising with the labour supply under the proposed UBI? If so, are there any likely consequences on wages