(solution) What would be the effect upon the budget line and the resource-owner’s optimum of a

(solution) What would be the effect upon the budget line and the resource-owner’s optimum of a

What would be the effect upon the budget line and the resource-owner’s optimum of a progressive income tax on labor earnings? of a time-and-a-half rule for overtime work? Diagram a situation in which a resource-owner devotes all of his or her resource to reservation uses. Does this necessarily imply that income I must be a “bad” or a “neuter” commodity at the solution point? Diagram a situation in which the resource-owner’s optimum is such that no reservation uses R are retained. Does this imply that R must be a “bad” or a “neuter” commodity at the solution point? Explain.