In the basic income- leisure model of individual labor supply state whether the following statements are true or false, and explain using graphs.
In the basic income- leisure model of individual labor supply:
a) The introduction of an income tax on wages will decrease hours worked.
b) If leisure is a normal good and government introduces a cash grant of 500 EGP to all individuals if they are unemployed daily workers, the individuals may decide not to work anymore.
Using Becker's model of allocation of time:
c) Explain whether and how your answers to a) or b) above will differ in terms of direction of relationship or rationale. (no need for graph)
d) Based on any of the above models explain whether the effect in a) above is expected to be stronger for men or women and why? (no need for graph)