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.
If Leo earns $150 he will receive total benefits in the amount of

Question

Quizplus · Accepted Answer

If Leo does not earn any income, he will receive $225 from each of the two benefits, which adds up to a total of $450 in benefits. 
For each dollar he earns, each benefit is reduced by 75 cents. Therefore, if Leo earns $150, he would have earned 150*0.75 = $112.50, which would be subtracted from his benefits. 
Since he qualifies for two benefits, each reduced by $112.50, he would still receive $225 from each benefit, which adds up to a total of $450 in benefits. So, the total benefits he would receive if he earns $150 is the same as if he does not earn any income, which is $225 from each benefit or $450 in total. Thus, the best choice is C) $225.

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