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

Wages = 2000 hours x $8 per hour = $16,000 
Work expenses + child care costs = $2,000 + $3,000 = $5,000 
Substitute these values into the welfare formula: 
Welfare benefit = $10,000 - 0.7 [($16,000) - ($5,000)] 
Welfare benefit = $2,300 
Therefore, Miller's welfare benefit would be $2,300.

Use the Following Formula to Answer the Indicated Question: Welfare