Jason is a single father with two children who is eligible for welfare. He can work as a cashier at a grocery store for $6 per hour up to 1,200 hours per year. If Jason does not earn any income, he will receive $15,000 a year in welfare. If Jason works, the government will deduct 60 cents from his welfare stipend for every $1 that he earns in income. Given this policy, what will be Jason’s income is he works 600 hours during the year?

a. $3,600
b. $16,440
c. $15,000
d. $12,840


b. $16,440

Jason’s income will be $16,440.

Economics

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