Figure 16.1
$$\text { Mary }$$ Mary
$$\text { Jane }$$ Jane

-According to figure 16.1 which person will choose to participate in a workfare programs?
A) Jane
B) Mary
C) Neither
D) Both

Question

Figure 16.1
 $$\text { Mary }$$ Mary
 $$\text { Jane }$$ Jane
 
-According to figure 16.1 which person will choose to participate in a workfare programs?
A) Jane 
B) Mary 
C) Neither 
D) Both

Quizplus · Accepted Answer

Based on the graph, Jane's budget constraint line with workfare (dashed line) is parallel to her budget constraint line without workfare (solid line), indicating that her opportunity cost of leisure is the same with or without workfare. Therefore, Jane will choose to participate in workfare programs as it increases her income without affecting her leisure time. On the other hand, Mary's budget constraint line with workfare is steeper than her budget constraint line without workfare, indicating that workfare increases her opportunity cost of leisure. As a result, Mary will choose not to participate in workfare programs.

Figure 161 Mary \text { Mary } Mary Mary Jane \text { Jane } Jane Jane -According to Figure 16

Figure 161 $\text { Mary }$ Mary $\text { Jane }$ Jane

-According to Figure 16