A person's wage is $5 per hour, usually he work 8 hour per day. Now suppose the government puts in place an income maintenance program where every citizen is entitled to a minimum daily income of $40, and where each dollar of labor earnings reduces the government handout by a dollar.
1. If He does not work, how large is the handout she will receive from the government?
2. If he works for 4 hours, how large is the handout she will receive from the government?
3. If he works for 8 hours, how large is the handout she will receive from the government?
4. If he works for 12 hours, how large is the handout she will receive from the government?