Posted by **tofu** on Wednesday, January 31, 2007 at 3:06pm.

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 dont work @ all, u still get a specific amount of $.....

YEs, it is a non hour income.

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