Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.7 [Wages - (Work expenses + Child care costs)] Suppose Miller works 2,000 hours per year at a wage of $8 per hour,has child care expenses of $3,000 per year,and has work expenses of $2,000.If the state maximum welfare benefit is $10,000 per year,based on the welfare formula given,Miller's welfare benefit will be

Question

Quizplus · Accepted Answer

First, calculate Miller's annual earnings:
$8/hour x 2,000 hours/year = $16,000/year
Then, plug his earnings, child care expenses, and work expenses into the welfare formula:
Welfare benefit = $10,000 - 0.7[($16,000) - ($3,000 + $2,000)]
Welfare benefit = $2,300

Use the Following Formula to Answer the Indicated Question: Welfare