(Solved): The indifference curves on the following graph show Maria's preferences for leisure and consumption ...

The indifference curves on the following graph show Maria's preferences for leisure and consumption for increasing levels of utility, such that her utility increases in both consumption and leisure. Assuming that Maria spends 68 hours each week sleeping, she has a maximum of 100 hours available to her for leisure if she does not work at all, Initially, she works 50 hours (and thus has 50 hours of leisure) and earns \( \$ 400 \) per week. Use the grey point (star symbol) to indicate Maria's initial leisure/consumption bundle. Dashed drop lines will automatically extend to both axes. Wse the biack point (cross symbol) to reoresent Marias unemployment point on the previous graph when she consumes \( \$ 350 \) per week and has too nowis of teriune. Suppose that after a month of being unemployed, Maria's friend Kevin suggests that she apply for a job at his company, where she could earn her previous salary again by working 50 nours per week. Thue or False: Becalase Maria is on a lower indifference curve while recelving unemployment benefits than she was when she was employed, she would be better off working at her friendis company than she is remaining unemployed. True Felse On the previous graph, use the green point (criangle symbol) to indicate the minimum weekly salary (an equivalent bumdle) that would make Maria as weil off warking 50 hours per week as she is when unemployed and collecting \( \$ 350 \) in benefits. Now, suppose that the government enacts reforms that reduce unemployment compensation to \( \$ 200 \) per week for Maria. On the previous graphl, use the orange point (square symbof) to represent Marias new leisure/consumption bundie when she consumes \( \$ 200 \) per week and has 100 hours of feisure. Then use the biue point (circle symbol) to indicate the minimum weekil salary (an equivalent bundle) that wouid make Maria as welf off working 50 hours per week as she is when unemployed and coliecting anly \( \$ 200 \) in benefits. Camplete the following table by entering the minimum weekly salary that would make Maria as well off working 50 hours per week as she is when unemployed and collectisg the unemployment benefits fisted in the following table. The decrease in unemployment benefits makes Maria likely to accept a fob; therefore, based on this example, you wouid expect that a decrease in benefits would cause workers who are currently collecting unemployment benefits to accept job offers.