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How was this answer obtained ? may youexplain it into details rather than restaitng, make any references, explain the thoery and step by step, thanks

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A. Smith, who is currently unemployed, is a participant in four welfare programs that offer daily benets of 10 each to people with no earned income. Each program then curtails its benets by 50 cents for every euro of income a recipient earns. A. Smith's identical twin brother, B. Smith, is enrolled in an experimental negative income tax program that gives him 40/day in benefits and then taxes him at the rate of 50 per cent on each euro of earned income. Now suppose A. Smith is offered a job that pays 4/hr, the same wage his brother earns. 3. Draw the budget constraint for each twin. b. How many hours would they have to work before A. Smith ends up with more net cash and benets than his brother? ANSWER; a. After-tax income (than) B. Smith's budget constraint Leisure (hrs Mag) 4 19 24 b. They would have to work more than 20 hours/day before A. Smith ends up with more after-tax income

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