Posted by tofu on .
Suppose an individual has 60 hours of time available in the week and has
to decide how much to work. The hourly wage is $ 10 and he has $ 50 per
week from a government subsidy.
1. (15 points) Draw an equilibrium where the individual choose to work
50 hours per week.
now my question is mainly deals with the government subsidy...
do you treat it as an non labour income?? meaning if u don't work @ all, u still get a specific amount of $.....
YEs, it is a non hour income.