Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.7 [Wages - (Work expenses + Child care costs)] Suppose Carter works 1,200 hours per year at a wage of $6 per hour,has child care expenses of $2,200 per year,and has work expenses of $800.If the state maximum welfare benefit is $12,000 per year,based on the welfare formula given,Carter's welfare benefit will be

Question

Quizplus · Accepted Answer

First, we need to calculate Carter's wages:

Wages = 1,200 hours/year x $6/hour = $7,200/year

Next, we plug in the values given into the welfare formula:

Welfare benefit = $12,000 - 0.7 [($7,200) - ($800 + $2,200)]
Welfare benefit = $12,000 - 0.7 ($6,600)
Welfare benefit = $12,000 - $4,620
Welfare benefit = $7,380

Therefore, Carter's welfare benefit will be $7,380. The correct answer is C).

Use the Following Formula to Answer the Indicated Question: Welfare