Employment insurance is a system that provides insurance benefit to workers who involuntarily lose their jobs. Suppose that the current eligibility requirement for employment insurance is workers who have worked for 12 weeks or more per year. Assume that there is 52 weeks in a year and the wage rate is $400 per week, and maximum benefit payment duration is 25 weeks of per year. The benefit amount is 60% of wage paid for 25 weeks.

a. Construct the corresponding income-leisure constraint.

b. Compute the level of income if this individual is to work 22 weeks a year. What is amount of earned income and what is the amount of welfare benefit?

c. Compute the level of income if this individual is to work 42 weeks a year. What is amount of earned income and what is the amount of welfare benefit?