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Part (a) What is a negative income tax? Part (b) Draw an income-leisure graph to show the impact of a negative income tax scheme on

Part (a)What is a negative income tax?

Part (b)Draw an income-leisure graph to show the impact of a negative income tax scheme on labour force participation.

Part (c)Does the imposition of a negative income tax reduce work incentives? Explain briefly (1-3 sentences). (no specific word-count)

Part (d)In your opinion, should the government introduce such as policy? Why or why not (minimum 3 sentences with 1 or 2 arguments for or against). (no specific word count)

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