Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. If Leo earns $150, then he will receive ________ in total benefits from the two programs.

A. $225.
B. $75.
C. $325.
D. 0.


Answer: A

Economics

You might also like to view...

Exempting food purchases from sales tax is consistent with the ability-to-pay principle, although not necessarily consistent with vertical equity

Indicate whether the statement is true or false

Economics

Suppose that both the supply of iPads and the demand for iPads decrease. One can predict that the:

A. equilibrium price and quantity will fall. B. equilibrium price will rise, but the change in equilibrium quantity is uncertain. C. equilibrium quantity will fall, but the change in equilibrium price is uncertain. D. equilibrium price and quantity will rise.

Economics

The best estimate of the effect of the euro on trade, according to Richard Baldwin, is a(n):

A) increase of 9%. B) increase of 235%. C) fall of 9%. D) fall of 7%.

Economics

Which of the following could be a cause of consumption decreasing?

A. Wealth increases. B. Real income increases. C. Expected future income increases. D. Interest rates increase.

Economics