Suppose the annual welfare benefit formula is Benefit = $8000 − 0.67(Wages > $2,000)

(a) What is the marginal tax rate on

(i) The first $2,000 of wages?

(ii) Wages above $2,000?

(b) How large is the benefit if wages equal

(i) $0?

(ii) $2,000?

(iii) $6,000?

(c) What is the breakeven level of income in this case?