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

question 58

Multiple Choice

Leo is a welfare recipient who qualifies for two needs-tested cash benefits.If he does not earn any income,he receives $225 from each benefit.For each dollar he earns,each benefit is reduced by 75 cents until the benefit equals zero.
-Refer to the above information.If Leo only values income and not how the income is acquired,then he must earn __________ to be as well off as when __________ and receives benefits.

• A) $300;he earns nothing
• B) $150;he earns $50
• C) $250;he earns nothing
• D) $350;he earns nothing
• E) $450;he earns nothing

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Definitions:

Posterior Probabilities

The probabilities of different possible outcomes or hypotheses being true after considering new evidence, rephrasing the concept in a broader context.

Prior Probabilities

The probabilities assigned to events before any new evidence is considered, often used in Bayesian analysis.

Expected Monetary Value

A calculated average of possible outcomes, where each outcome is weighted by its probability of occurrence and its monetary impact.

Optimal Act

The most efficient or effective action to achieve a desired outcome or goal.