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Answer: D. Tim’s income level increases the more he works.
Explanation:
Tim's income for the year = Salary from working + Welfare
Lets say Tim works <u>200 hours</u> in a year.
His salary will be:
= 8 * 200 hours
= $1,600
Welfare:
70 cents off for every $1 so the amount they will deduct from Welfare is:
= 0.7 * 1,600
= $1,120
They will deduct this amount from the welfare of $15,000 and give Tim the rest.
Total income = 1,600 + (15,000 - 1,120)
= $15,480
Lets say Tim works <u>500 hours</u> a year.
Salary is:
= 500 * 8
= $4,000
Amount to be deducted for welfare:
= 0.7 * 4,000
= $2,800
Total income:
= 4,000 + (15,000 - 4,000)
= $16,200
Notice how the income goes up as Tim works more. This policy therefore provides a monetary incentive to work harder.
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Answer:
$1,411.25
Explanation:
The computation of the combined gross monthly income is shown below:
The earnings of Jose = $23.50 × 40 hours = $940
And, the earnings of Zola is
= $21.50 × 40 hours + 5 hours × $21.50
= $860 + $161.25
The total earnings is
= $940 + $860 + $161.25
= $1,961.25
And, the expenses are
= $500 + $50
= $550
So the combined gross monthly income is
= $1,961.25 - $550
= $1,411.25
