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Leo Is a Welfare Recipient Who Qualifies for Two Means-Tested

Question 101

Multiple Choice

Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency) , his benefit from each program is reduced by 75 cents until the benefit equals zero. If Leo only values income and not how the income was acquired, then he must earn ________ to be as well off as when he earns nothing and receives benefits.


A) $225
B) $300
C) $450
D) $350

Correct Answer:

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