Draw a graph for an individual labour supply choice (indifference curves and budget lines in a leisure-vs-income
No answer yet for this question.
Ask a Tutor
Question:
Draw a graph for an individual labour supply choice (indifference curves and budget lines in a leisure-vs-income system of coordinates). a. In your diagram, show what happens to the equilibrium choice of work hours by a worker when the worker turns 65 and starts receiving (unconditional, i.e., independent of whether she works or not and how much she works) old-age pension weekly payments of $800. b. Why you have concluded that this worker would choose to work less after the old-age pension weekly payments start arriving (refer to your diagram when you explain what happens in words). 2. Does a demogrant increase labour force participation (for the people who receive the demogrant) or decrease labour force participation? Explain why.
Posted Date: