14.2 The poverty trap  (Page 8/10)

Card 8 / 10:
and asked you to describe the labor-leisure tradeoff for Jonathon. Since, in the first example, there is no monetary incentive for Jonathon to work, explain why he may choose to work anyway. Explain what the opportunity costs of working and not working might be for Jonathon in each example. Using your tables and graphs from and , analyze how the government welfare system affects Jonathan’s incentive to work.

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