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Greg earns $10 per hour for work for up to 30 hours of work each week. He is paid $15 dollars per hour for every hour in excess of 30. Greg faces a 15 percent tax rate and pays 3 dollars an hour in child-care expenses for each hour he works. Greg receives $40 in welfare a week .There are 168 hours in the week. Graph and fully label Greg’s non-linear budget constraint. When graphing the budget constraint, incorporate taxes and childcare expenses into his wage so that we are graphing his final wage.
Consider an economy in which production characterized by the neoclassical function Y=K^.5N^.5. Suppose, again, that it has a saving rate of .1, a population growth rate of .02
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