4. Now suppose that, instead of taxing citizens to hire health-care workers, the govern- ment imposes compulsory health-care training and service: the representative house- hold has to dedicate m units of time to administer vaccines, unpaid. The rest of their time is available to use as they please and no taxes are imposed. Set up the household's optimisation problem under this policy. 5. Show that the representative household's level of consumption, leisure, hired health- care labour and compulsory health-care labour are the same under both policies. Ex- plain.

4. Now suppose that, instead of taxing citizens to hire health-care workers, the govern- ment imposes compulsory health-care training and service: the representative house- hold has to dedicate m units of time to administer vaccines, unpaid. The rest of their time is available to use as they please and no taxes are imposed. Set up the household's optimisation problem under this policy. 5. Show that the representative household's level of consumption, leisure, hired health- care labour and compulsory health-care labour are the same under both policies. Ex- plain.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 5QR

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