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Leo Is a Welfare Recipient Who Qualifies for Two Needs-Tested

Question 88

Multiple Choice

Leo is a welfare recipient who qualifies for two needs-tested cash benefits.If he does not earn any income,he receives $225 from each benefit.For each dollar he earns,each benefit is reduced by 75 cents until the benefit equals zero.
-Refer to the above information.When Leo's earnings are less than $300,each extra dollar he earns causes his total income (earnings plus benefits) to


A) fall by 25 cents.
B) rise by 50 cents.
C) fall by $1.
D) rise by 75 cents.
E) fall by 50 cents.

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