Analyzing the Impact of a Universal Basic Income Policy
An economist wants to predict how a new universal basic income (UBI) policy would affect an individual's optimal choice of free time. The individual's optimal amount of free time is represented by a function that depends on their hourly wage and their unearned income. Explain, step-by-step, the mathematical procedure the economist should use to analyze the impact of the UBI. In your explanation, specify the key mathematical operation and discuss what the sign (positive, negative, or zero) of the result would indicate about the individual's behavior.
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Introduction to Microeconomics Course
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Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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