Sam is a single father with 2 children. He earns $15 per hour and can work up to 1,800 hours per year. If Sam does not earn any income at all, he receives government benefits totaling $20,000 per year. For every $1 of income he earns, his level of government support is reduced by $1. Which of the following statement best describes Sam’s situation? Group of answer choices A. He has no monetary incentive to work. B. He has a monetary incentive to work if he works more than 1800 hours. C. He has a monetary incentive to work as long as he does not exceed 1800 hours D. He has no monetary incentive to work more than 1200 hours.
Sam is a single father with 2 children. He earns $15 per hour and can work up to 1,800 hours per year. If Sam does not earn any income at all, he receives government benefits totaling $20,000 per year. For every $1 of income he earns, his level of government support is reduced by $1. Which of the following statement best describes Sam’s situation? Group of answer choices A. He has no monetary incentive to work. B. He has a monetary incentive to work if he works more than 1800 hours. C. He has a monetary incentive to work as long as he does not exceed 1800 hours D. He has no monetary incentive to work more than 1200 hours.
Chapter33: Income, Income Distribution, And Poverty
Section: Chapter Questions
Problem 13E
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Question
Sam is a single father with 2 children. He earns $15 per hour and can work up to 1,800 hours per year. If Sam does not earn any income at all, he receives government benefits totaling $20,000 per year. For every $1 of income he earns, his level of government support is reduced by $1. Which of the following statement best describes Sam’s situation?
Group of answer choices
A. He has no monetary incentive to work.
B. He has a monetary incentive to work if he works more than 1800 hours.
C. He has a monetary incentive to work as long as he does not exceed 1800 hours
D. He has no monetary incentive to work more than 1200 hours.
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