Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Bruce works, the government policy is to deduct 60
Cents from his welfare stipend for every $1 that he earns in income. With this policy in place, if Bruce works 600 hours, his income will be

Question

Quizplus · Accepted Answer

Bruce earns $3,600 from working (600 hours x $6/hour). The government deducts 60% of his earnings from his welfare, which is $2,160 (60% of $3,600). His welfare is reduced to $12,840 ($15,000 - $2,160). His total income is $3,600 (earnings) + $12,840 (reduced welfare) = $16,440.

Bruce Is a Single Father with 1 Child