Question
Susie is eligible for up to $500 a month in TANF payments. She can earn $100 a month before any earnings are taxed, but earnings
Susie is eligible for up to $500 a month in TANF payments. She can earn $100 a month before any earnings are taxed, but earnings in excess of this amount are taxed at a rate of 66%.What is her break even point if the wage rate she is eligible for is $8 an hour?How many leisure hours is she consuming at her break even point if she has 512 hours a month to leisure or work
b. Graph Susie's budget constraint, labeling the break even point and other breaks in the curve as well as slopes of each line.Draw Susie's indifference curves such that she chooses to work 10 hours a month
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