1. Consider an expenditure program providing anyone whose income is below a particular level with a cash grant. Assume that an individual earns $12 per hour if s/he works, and time endowment is 24 hours per day and 720 hours per month. The government provides a benefit to guarantee $300 per month in income, but the benefit is reduced by $1 for every $3 of labor income. At what income level, does the benefit disappear? Given the monthly income-leisure trade-off under this welfare program, what are the hours of work and leisure when the benefit disappears? Also, when the individual with a normal indifference curve maximizes utility given the budget constraint, describe graphically the effects of the welfare program on the work incentive