Problem
The second policy is to target children in low-income households by giving the tax-free basic income to mothers (or else primary caregivers) with income below a certain threshold. The basic income would then be abated at a fixed rate for every dollar the mother earns above that income threshold.
2 Because this program would be less expensive than the first program, the government can fund it without increasing income tax rates. Use the labour-leisure model to evaluate the impact of this policy on labour supply and welfare. Who wins and who loses from the policy? Include graphical analyses in your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.