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Scenario 20-6 Zooey Is a Single Mother of Two Young Children Whose

Question 136

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Scenario 20-6
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which
Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-6. If Zooey decides to quit her job and earns $0 in income annually, how much more or less money will she have compared to continuing to work as a cashier?


A) If she quits her job, she will have $10,000 less per year.
B) If she quits her job, she will have $15,000 less per year.
C) If she quits her job, she will have $10,000 more per year.
D) If she quits her job, she will have $15,000 more per year.

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