Lance 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 Lance works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. When Lance works 1,200 hours, he receives _______ in government support and his total income is _______.

Question

Quizplus · Accepted Answer

When Lance works 1,200 hours, he earns $7,200 (1,200 hours x $6 per hour). The government deducts 60 cents from his welfare stipend for every $1 that he earns in income, so his welfare stipend is reduced by $4,320 (0.60 x $7,200). This means that Lance receives $10,680 in government support ($15,000 - $4,320). His total income is $17,880 ($7,200 + $10,680).

Lance Is a Single Father with 1 Child