Crystal is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $18,000 per year. For every $1 of income she earns, her level of government support is reduced by $1. Crystal's labor-leisure opportunity set
A) has doubled
B) is smaller with the government support program
C) is not affected by the government support program
D) is larger with the government support program
Correct Answer:
Verified
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