Question

Use the data from Problem 1 to plot the worker's daily money income-leisure trade-off line. To do so, calculate her daily pension and assume 150 working hours in a month. Assume that the worker is allowed to earn $8,000 per year before her Social Security benefits are reduced by $1 for each $3 of labor earnings.
Show how it is possible for the retiree to be indifferent between not working at all and working enough to give up all her Social Security benefits.


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  • CreatedAugust 22, 2015
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