1. Consider the following earnings supplement program, Self-Sufficiency Project. An individual can work a maximum of 60 hours per week, at a wage rate of $5 per hour. Welfare benefits are fixed at $200 per week, with a 100 percent tax back on labor earnings. Finally, the earnings supplement equals half the difference between an individual's labor earnings and the benchmark earnings of $450 per week. This supplement can be collected only if the individual forgoes welfare benefits and works a minimum of 30 hours per week. Draw the individual's budget constraint, and analyze the work decision.

4. Consider the following earnings supplement program, Self-Sufficiency Project. An individual can work a maximum of 60 hours per week, at a wage rate of $5 per hour. Welfare benefits are fixed at $200 per week, with a 100 percent tax back on labor earnings. Finally, the earnings supplement equals half the difference between an individual's labor earnings and the benchmark earnings of $450 per week. This supplement can be collected only if the individual forgoes welfare benefits and works a minimum of 30 hours per week. Draw the individual's budget constraint, and analyze the work decision