Leo is a welfare recipient who qualifies for two means-tested cash benefits.If he does not earn any income,he receives $225 from each benefit.For each dollar he earns (which his employer is required to report to the welfare agency),each benefit is reduced by 75 cents until the benefit equals zero.
Suppose Leo earns $10.He will lose _____ from each benefit,for a total loss of ____.

Question

Quizplus · Accepted Answer

For every dollar Leo earns, his benefits are reduced by $0.75. If he earns $10, his benefits will be reduced by $7.50 ($0.75 x 10) for each of the two benefits. Therefore, he will lose a total of $15.00 ($7.50 x 2) from his benefits. Therefore, the correct option is C.

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