Part (a)Draw the appropriate income-leisure graph for a worker who receives no non- labour income. This individual can work a maximum of 60 hours per week, at a wage rate of $5 per hour.

Part (b)Please draw a second income-leisure graph for this worker, who is now eligible to receive social assistance (welfare) benefits that are fixed at $200 per week, with a 100 percent tax back on labour earnings.

Part (c)An earnings supplement program, modelled after the Self-Sufficiency Project, is introduced in addition to the social assistance benefits program. Please draw a third income-leisure graph. The earnings supplement equals half the difference between anindividual's labour earnings and the benchmark earnings of $450 per week. Thissupplement can be collected only if the individual forgoes welfare benefits and works a minimum of 30 hours per week.

Part (d)In brief, describe the decision to work by this individual in the presence of the earning supplement program.