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For each of the following welfare systems, describe the work incentives created by the welfare program. Assume that workers make $10 per hour if they
For each of the following welfare systems, describe the work incentives created by the welfare program. Assume that workers make $10 per hour if they work. For each part, your answer should include i. A discussion of income and substitution effects. ii. A graph showing an individuals working hours choice without any welfare program and the individuals working hours choice with the welfare program. a. Universal basic income that gives everyone $30 per day, regardless of income. b. Earned Income Tax Credit (EITC).
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