Final answer:
Jonathon and Susan's scenarios require the creation of tables that reflect how working different numbers of hours affects their earnings, government benefits, and total income, highlighting the trade-offs and interactions between labor and welfare support.
Step-by-step explanation:
The situation described involves determining the optimal work schedule for two individuals, Jonathon and Susan, considering their wage rates and the interaction of government benefits with earned income.
Both scenarios are examples of an economic analysis involving individual decision-making with respect to labor supply and the effects of government welfare support.
By creating tables reflecting the combined income from work and government benefits at different levels of work hours, they illustrate the impact of welfare programs on work incentives.
To generate the tables and diagrams mentioned, one would list different scenarios of hours worked and calculate the corresponding earnings from work.
Government benefits received would be calculated as the difference between potential welfare benefits without work and the earnings made from work.
This reflects the reduction of government benefits by $1 for each $1 earned. The sum of earnings from work and government benefits would give the total income, demonstrating the trade-off between labor and leisure and how welfare benefits affect that trade-off.