Use the data from Problem 1 to plot the worker’s daily money income–leisure trade-off line. To do so, calculate her daily pension and assume 150 working hours in a month. Assume that the worker is...


Use the data from Problem 1 to plot the worker’s daily money income–leisure trade-off line. To do so, calculate her daily pension and assume 150 working hours in a month. Assume that the worker is allowed to earn $8,000 per year before her Social Security benefits are reduced by $1 for each $3 of labor earnings. Show how it is possible for the retiree to be indifferent between not working at all and working enough to give up all her Social Security benefits.




May 26, 2022
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