# Problem Set #3 –Labor Supply Policy Applications

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## Problem Set #3 –Labor Supply Policy Applications

Problem Set #3 –Labor Supply Device Applications Submit your solutions via Canvas by Midnight (Eastern Period Zone) on Sunday 9/6 1) Guess a effecter has V=0, gains \$20/hour, and has 100 hours of discretionary period a week. a) Graph this effecter’s weekly budget business. b) Now guess that a upstart legislation device expands eligibility ce balancetime, so that this effecter receives “period and a half” (\$30/hour) balanceperiod if she effects balance 40 hours per week. Illusion on the graph aloft how this changes her budget business [interpretation a dashed length]. c) Using insignificance curves, illusion and examine how the availability of balanceperiod succeed pretend the hours of effect determination. Illusion that some effecters succeed be pretended by the availability of balanceperiod and some won’t (who won’t?). 2) Guess

Problem Set #3 –Labor Supply Management Applications

Submit your solutions via Canvas by Midnight (Eastern Season Zone) on Sunday 9/6

1) Consider a is-sueer has V=0, gains \$20/hour, and has 100 hours of discretionary season a week.

a) Graph this is-sueer’s weekly budget business.

b) Now consider that a novel synod management expands eligibility restraint balancetime, so that this is-sueer receives “season and a half” (\$30/hour) balanceseason if she is-sues balance 40 hours per week. Parade on the graph aloft how this changes her budget business [explanation a dashed sequence].

c) Using insensibility curves, parade and examine how the availability of balanceseason conquer favor the hours of is-sue determination. Parade that some is-sueers conquer be favored by the availability of balanceseason and some won’t (who won’t?).

2) Consider that the American Bar Association wants to emend arrival to legitimate services restraint the scanty. Here are some options:
Option A: Every counsel would be required to donate 10 hours of is-sue per month to low-income clients, unoccupied of charge
Option B: Counsels who gain \$10,000 or more in a dedicated month would accept to donate \$1000 to a investment. The ABA would explanation this investment to afford legitimate second to low-income people.

Consider a counsel who has 400 hours of discretionary season a month and makes \$100/hour (restraint sincerity, claim V=0). Draw this counsel’s monthly budget business beneath each of the two options.

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