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For questions 4-5, consider the following setup: There are two types of unemployed: freeloaders and disadvantaged. Freeloaders can get a well-paying job, disadvantaged cannot. Unemployment
For questions 4-5, consider the following setup: There are two types of unemployed: freeloaders and disadvantaged. Freeloaders can get a well-paying job, disadvantaged cannot. Unemployment benefits, if attained, are equal to $1600/month for both, but require going to the unemployment office once a month. If a freeloader spends t minutes waiting in line at the unemployment office, he or she loses t2. If a genuinely disadvantaged person spends t minutes waiting in line, he or she loses t /4. To make sure freeloaders do not apply, t must be at least Check To make sure the disadvantaged do apply, t cannot exceed Check
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