In: Economics
TANF Budget Constraint mentioned in the Picture 1 and Income and labour, Leisure relationship mentioned in Picture 2
1. Explanation Budget Constraint:
Though there is straight line mentioned as direct proportionate between available cash and number of families supported, there are possiblity of managing to serve all the families planned families by reducing the amount spent on each family. But as per original budget, deviation from planned budged will have direct proportion and so the budget constraint topic arises.
2. Explanation on labor and leisure
Ideally Labor hours and leisure hours are inversly proportionate to the Income, If the income has to rise then labor hours has to increase and lesure hours has to decrease. But this is more relavant beyond the breaking point that is until the basic needs gets fulfilled, People ignore leisure and then after that equilibrium most people tend to ignore income and prefer to go for leisure.