Draw the yearly budget constraint between leisure and income for a worker that can earn $40/hr. Assume there are 365 days available each year, and each day has up to 16 hours available for work or leisure (8 hours is sleep). Answer the following questions:

1. What is the person’s endowment?
2. What is the vertical intercept of the budget constraint?
3. What is the slope of the BC?
4. What is the slope of the new BC if the worker now has 50% wage increase?

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