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A) Explain how the following factors affect the demand for children and women's labour supply: Costof Child. Price of Related Goods,and Tastesand Preferences. (5 points)b) Consider an individual aged 64 who is eligible to collect full socialsecurity (public pension)benefits of $5000 for a year. She hasno other income but can workat a weekly wage rate of $400for a maximum of 52 weeks.The receipt of benefits from the social security program is retirementtested. Specifically, the individual can earn up to $8000 in annual wage income without a reductionin benefits, however, after $8000 of earnings, benefits are reduced by 50 percent forevery dollarearned, until the benefits are exhausted. |
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