Question

Tim is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Tim works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. This government policy provides a monetary incentive to work, because

Answer 1

Answer:

The more he works, the higher Tim's salary level. A further explanation is provided below.

Explanation:

Throughout this instance, we must look at Tim's degree of labor as well as his revenue.

Tim would then earn $15,000 if he doesn’t really perform, then he can make,

= $6\times 1200$

= $7200 \ per \ year$

60 per cent of its revenue as well from his assistance fund would be deducted by the administration.

= $15000-0.60\times 7200$

= $10680$

Now,

His total income will be:

= $10680+7200$

= $17880$

Thus the above is the correct answer.