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Tomoko Receives a Lump Sum Child Support Payment of $200

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Tomoko receives a lump sum child support payment of $200 per week. She has 80 hours a week to divide between labor and leisure. She earns $5 an hour. The first $100 per week of her labor income is untaxed, but all labor income that she earns above $100 is taxed at the rate 50%. If we graph her budget line with leisure on the horizontal axis and consumption on the vertical axis, her budget line has

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Definitions:

Permanent Structures

Buildings or constructions meant to be durable and to exist for a long period without significant alteration.

Ownership Interest

The legal right or claim a person has in a property or business, usually expressed as a percentage.

Estate

An interest in land. Property owned by a decedent at the time of his death.

Fee Simple Absolute

The highest form of land ownership, which gives the owner the right to possess and use the land for an unlimited period of time, subject only to governmental or private restrictions, and unconditional power to dispose of the property during his lifetime or upon his death.

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