Question
Your country has a cash safety net program, welfare that provides eligible families who don't work at all with an welfare benefit of G=1000, and
Your country has a cash safety net program, welfare that provides eligible families who don't work at all with an welfare benefit of G=1000, and then taxes away that income at a rate of 30%. Assume full time work is 2000 hours a year. a. 10 points. Label the X and Y axes on the graph below and draw the budget set with the welfare program. Place the following types of individuals on the budget set and draw their indifference curves. 1) individuals who don't work under the program, 2) who work but get some welfare, and 3) who don't get any welfare. Do this all for for a wage w = 2.
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