#### Question Details

EITC

Assume that the structure of EITC is as follows:

1.Â Â Â Â Â Â During the phase in range, EITC recipients receive an additional 15% of their income for each dollar earned up to a maximum of a $3,000 credit limit.

2.Â Â Â Â Â Â They can earn this $3,000 credit until the phase out range, which begins when they start earning $30,000 or more.

3.Â Â Â Â Â Â During the phase-out range, the credit reduces by 10% until it reaches $0

A.Â Â Â Â Â Graph the structure of the EITC with income on the X-axis and the EITC credit on the Y-axis. Clearly label all relevant points on the graph, including the maximum credit, earnings when the credit reaches $0, and earnings at the end of the phase in range and at the beginning and end of the phase out range.

B.Â Â Â Â Â Now assume a worker earns $2,000 per week if she works and can work up to 50 weeks a year. Plot a budget constraint for consumption (Y) on the Y axis and hours of Leisure (L) on the X-axis assuming that EITC does not exist.

C.Â Â Â Â Â Now, on the same graph, draw her budget constraint assuming EITC exists.

Be sure to label on both the Y and X axes the values for each part of EITC. That is, at how many weeks of work does the phase-in end: what will our worker earn? At how many weeks of work does the phase-out begin and end; how mch does our worker earn at each point?

EITC Structure Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Consumption/Leisure

**Solution details:**

Answered

QUALITY

Approved

ANSWER RATING

This question was answered on: * Sep 05, 2019 *

* * Solution~000200160708.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

##### Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

#### About this Question

STATUSAnswered

QUALITYApproved

DATE ANSWEREDSep 05, 2019

EXPERTTutor

ANSWER RATING

#### GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

#### NEW ASSIGNMENT HELP?

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions.
New orders are original solutions *and precise to your writing instruction requirements. Place a New Order using the button below.*

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.