PART LB. WELFARE AND THE LABORLEISURE MODEL (24 points) Consider two types of welfare policies: universal basic income versus Milton Friedman's \"negative income tax.\" Universal basic income provides every adult citizen with a regular monthly stipend, or \"basic income.\" The \"negative income tax\" provides an lumpsum transfer of income and then taxes it away at a low marginal tax rate, t. In other words, the wage individuals earn is w*(1-t) income. 1. In separate figures, plot the budget constraints associated with each program. (5 points each) 2. Using the labor-leisure model and our in-class discussion, describe the pros and cons of both types of policies (cg, cost, incentives and disincentives associated with individuals at different points on the budget constraint). (7 points) 3. How would changing the Ieframing \"nonmarket wor \" as \"childcare\" or \"eldercare\" alter the set of pros and cons you describe above? (3 points) 4. If you were advising the state of California, which policy would you recommend? There is no right or wrong answeriI am looking for a wellreasoned argument. You should make explicit what you think the government's objective function should be and how your policy recommendation achieves some/ all of those goals. (4 points)