One proposal includes increasing the EITC for childless workers to provide additional assistance for many poor workers. While an increase in the EITC would increase resources to qualifying childless workers, what impact will it have on their working decision? Assume a basic hours towards leisure and income towards consumption model. a. If qualifying childless workers already have a strong preference to work so they are already choosing to work (ex: 10 hours), an increase in the EITC could lead to a new choice involving fewer hours spent working, more hours spent towards leisure and more income towards consumption. Thus, the EITC expansion could discourage work.   b.If qualifying childless workers already have a strong preference to not work so they are already choosing to work very littleand mostly enjoy leisure, an increase in the EITC could lead to a new choice involving more hours spent working, fewer hours spent towards leisure and more income towards consumption. Thus, the EITC expansion could encourage work.   c.Both are possible; so the proposal will discourage work for those with an otherwise high labor force participation rate and encourage work for those with an otherwise low labor force participation rate.   d.None of the above is possible.

Two labor-leisure choice diagrams are shown below. In both cases, the labor-leisure choice diagrams show how the individual's desired amount of leisure is influenced by the increase in her or his wage rate from w/ to w₂. INCOME a. 24W2 24W₁ Figure A b. Leisure is normal. Figure A HOURS OF LEISURE Figure A Figure B For each of the following statements, please indicate if the statement is TRUE (between wage rates w/ and w₂) for Figure A, Figure B, both figures, or neither figure. Please circle your response. The substitution effect is zero. Figure A Figure B Figure B c. Leisure is neither normal nor inferior. INCOME Figure B 24W2 24W1 Both figures Both figures HOURS OF LEISURE Both figures Neither figure Neither figure Neither figure

Question 2 of 5 Y 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 l total income per day. Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities. A. If non-labour income is $0.50 per day, this individual will choose hours of work and will have $ hours instead and enjoy hours of leisure. Their income from labour will be $ B. If non-labour income increases to $2, they will work C. Comparing parts A and B above, the income elasticity of this person's labour is equal to hours of leisure. Their total income per day will now be $ (round to two decimal places) which is (elastic/inelastic). Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). A. Graph the labour supply if L=5w. The (total) elasticity of labour supply is B. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply is per day and they

just subpart d please

An individual can earn $12 per hour if he or she works. Assume that a person can work at most 24 hours per day times 30 days per month for a total of 720 hours. Thus, the axis intercepts, in the absence of any program, are 720 × $12 = $8,640 in consumption and 720 hours of leisure.Scenario: Suppose that a new welfare program is introduced where the government guarantees $600 per month in income and reduces the benefit by $1 for each $1 of labor income. Below is the budget constraints that show the monthly income-leisure trade-off.  Given his/her 30 hours of works, he/she is qualified for the welfare program. Calculate his welfare benefits (not total monthly income) after considering dollar-for-dollar reduction. $  _______________________________________

Follow-up questions.  d. Let D be the difference in marginal product between an experienced worker and a new worker (MPe − MPn). Suppose that robust, experienced workers would prefer not to pool with sickly workers at their firm, and so they seek out a new job with an employer who does not offer health insurance. What will be the wage of the robust worker at the new job during the first year there? Keep in mind, these workers will no longer be experienced because they will be adapting to a new firm. Under what conditions will it make financial sense for the robust worker to change jobs? Your answer should be an inequality that includes D, θ, Vr, and Vs. e. D is a measure of job-specific human capital; as workers learn the job, they become more productive so D > 0. However, not every job or industry has the same value for D. In some lines of work D is low, while in others D is high, simply because of the nature of the work. Given the results, you have seen in this problem, in which…

Consider the following labor-leisure choice model. Utility function over consumption (C) and leisure (L) U(C.L) = (1/3L1/3 Total hours: H = 40 Labor hours: NS = H - L Non-labor income: π = 30 Lumpsum tax: T = 10 Hourly wage: w = 4 Suppose the hourly wage changes to w = 3. What is the substitution effect of this change on labor supply? A. +2.65 B. -2.65 C. +3.48 D.-3.48 E. None of the above

Q1) Peter lives for three periods. He is currently considering three alternative education-work options. He can start working immediately, earning $100,000 in period 1, $110,000 in period 2 (as his work experience leads to higher productivity), and $90,000 in period 3 (as his skills become obsolete and physical abilities deteriorate). Alternatively, he can spend $50,000 to attend college in period 1 and then earn $180,000 in periods 2 and 3. Finally, he can receive a doctorate degree in period 2 after completing his college education in period 1. This last option will cost him nothing when he is attending graduate school in the second period as his expenses on tuition and books will be covered by a research assistantship. After receiving his doctorate, he will become a professor in a business school and earn $400,000 in period 3. Peter’s discount rate is 20 percent per period. What education path maximizes Peter’s net present value of his lifetime earnings? Q2) (a) Is the presence of…

In period t, a parental household (indexed by i) equipped with human capital hit earns a labour income of wh^i_t, where w > 0 represents a constant wage rate. This household derives utility out of own consumption c^i_t, the number of children nit and their level of human capital h^i_(t+1). Education is provided by teachers who are equipped with the economy’s average level of human capital h^T_t . Human capital per child evolves from one period to another according to h^i_(t+1) =(e^i_t +e ̄)^η(h^i_t)^τ(h^T_t )^(1−τ), 0 < η, τ < 1 (1) where e ̄ > 0 is a constant parameter and e^i_t represents the level of education per child.The households’ utility function is specified as U_t^i = ln(c^i_t) + γ[ln(n^i_t) + βln(h^i_(t+1))]     (2) with γ,β > 0.Raising one child to adulthood requires a share of 0 < z < 1 units of time. Moreover, education is subsidised at a rate 0 ≤ s_e < 1, such that education costs per child amount to wh^T_t e^i_t(1 − s_e). Solve household i’s…

What are pure specific factors model and mixed pecific factors model? How does the two differ?