Section A: Answer Any TWO questions. Question 1: a. An individual has a monthly budget of 500. In addition, he receives a monthly government transfer equal to 300. Apply the rational choice model to discuss the implications of receiving the government transfer in cash or in the form of food vouchers. Use a diagram or diagrams to illustrate your answer, in your diagram(s) the horizontal axis should represent food consumption and the vertical axis should represent consumption of other things. (50 marks] b. Consider an individual who ears 50,000 now and 40,000 in the future. The government gives him 5,000 now, but increases taxes by 5,000 in the future. Assume that both the interest rate and inflation are zero. Use the intertemporal choice model to discuss the implications of receiving the government transfer if the individual is fully able to borrow against future income (1) he cannot borrow against future income. Use a diagram or diagrams to illustrate your answer. (50 marks] Question 2: John is a single father with a monthly budget of 1300 and one child. John marae hath ahnut his neumntion and his child's ronimntion For each 1 MacBook Pro Q Search or enter website name & Section A: Answer Any TWO questions. Question 1: a. An individual has a monthly budget of 500. In addition, he receives a monthly government transfer equal to 300. Apply the rational choice model to discuss the implications of receiving the government transfer in cash or in the form of food vouchers. Use a diagram or diagrams to illustrate your answer, in your diagram(s) the horizontal axis should represent food consumption and the vertical axis should represent consumption of other things. (50 marks] b. Consider an individual who ears 50,000 now and 40,000 in the future. The government gives him 5,000 now, but increases taxes by 5,000 in the future. Assume that both the interest rate and inflation are zero. Use the intertemporal choice model to discuss the implications of receiving the government transfer if the individual is fully able to borrow against future income (1) he cannot borrow against future income. Use a diagram or diagrams to illustrate your answer. (50 marks] Question 2: John is a single father with a monthly budget of 1300 and one child. John marae hath ahnut his neumntion and his child's ronimntion For each 1 MacBook Pro Q Search or enter website name &