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Lesley Is a Single Mother with 2 Children

Question 48

Multiple Choice

Lesley 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. Lesley


A) has no monetary incentive to work, though she may still choose to work
B) has a monetary incentive to work and will maximize her income if she works for 300 hours
C) has a monetary incentive to work and will maximize her income if she works for 600 hours
D) has a monetary incentive to work and will maximize her income if she works for 900 hours

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