It's a Labor Market. Thank you beforehand 1. Referring to the definitions in footnote 5, is the following statement true, false, or uncertain? "Leisure must be an inferior good for an individual's labor supply curve to be backward-bending." Explain your answer. 3. Suppose a government is considering several options to ensure that legal services are provided to the poor: Option A: All lawyers would be required to devote 5 percent of their work time to the poor, free of charge. Option B: Lawyers would be required to provide 100 hours of work, free of charge, to the poor. Option C: Lawyers who earn over $50,000 in a given year would have to donate $5,000 to a fund that the government would use to help the poor. Discuss the likely effects of each option on the hours of work among lawyers. (It would help to draw the constraints created by each option.) 5. Afirm wants to offer paid sick leave to its workers, but it wants to encourage them not to abuse it by being unnecessarily absent. The firm is considering two options: a. Ten days of paid sick leave per year; any unused leave days at the end of the year are converted to cash at the worker's daily wage rate. b. Ten days of paid sick leave per year; if no sick days are used for two consecutive years, the company agrees to buy the worker a $100,000 life insurance policy. Compare the work-incentive effects of the two options, both immediately and in the long run. 7. Suppose there is a proposal to provide poor people with housing subsidies that are tied to their income levels. These subsidies will be in the form of vouchers the poor can turn over to their landlords in full or partial payment of their housing expenses. The yearly subsidy will equal $2,400 as long as earnings do not exceed $8,000 per year. The subsidy is to be reduced 60 cents for every dollar earned in excess of $8,000; that is, when earnings reach $12,000, the person is no longer eligible for rent subsidies. Draw an arbitrary budget constraint for a person, assuming that he or she receives no government subsidies. Then draw in the budget constraint that arises from the above housing subsidy proposal. After drawing in the budget constraint associated with the proposal, analyze the effects of this proposed housing subsidy program on the labor supply behavior of various groups in the population