Income per month (= earnings + transfers)Hours beforeTANFKHours afterTANF- $100Hours of leisure per monthFigure 13.4Labor supply decisionunder TANFGiven Marge's indifferencecurves, the introduction ofTANF induces her to workless. She now works KThours, as opposed to FThours before TANF. In the analysis of TANF's work incentives inFigure 13.4, the individual continues to workwhile receiving welfare. Reproduce the budgetconstraint from that figure, and sketch a setof indifference curves for an individual whowould choose not to work while receiving wel-fare benefits.

Workers have to choose generally between leisure and labor . In economics , workers will choose more…

Answered: F $100 TANF Hours before e Income per…

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F $100 TANF Hours before e Income per month (= earnings + transfers) 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Income per month (= earnings + transfers)
Hours before
TANF
K
Hours after
TANF
- $100
Hours of leisure per month
Figure 13.4
Labor supply decision
under TANF
Given Marge's indifference
curves, the introduction of
TANF induces her to work
less. She now works KT
hours, as opposed to FT
hours before TANF.

In the analysis of TANF's work incentives in
Figure 13.4, the individual continues to work
while receiving welfare. Reproduce the budget
constraint from that figure, and sketch a set
of indifference curves for an individual who
would choose not to work while receiving wel-
fare benefits.

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