Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.4 [Wages - (Work expenses + Child care costs)] Suppose Emily works 1,800 hours per year at a wage of $8 per hour, has child care expenses of $4,000 per year, and has work expenses of $1,000. If the state maximum welfare benefit is $12,000 per year, based on the welfare formula given, Emily's welfare benefit will be

A. $3,760.
B. $2,600.
C. $8,240.
D. Zero because her income exceeds the limit.


Answer: C

Economics

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