Use the Following Formula to Answer the Indicated Question: Welfare

question 137

Multiple Choice

Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.7 [Wages - (Work expenses + Child care costs) ]
Suppose Miller works 2,000 hours per year at a wage of $8 per hour,has child care expenses of $3,000 per year,and has work expenses of $2,000.If the state maximum welfare benefit is $10,000 per year,based on the welfare formula given,Miller's welfare benefit will be

• A)Zero because his income has exceeded the limit.
• B)$2,300.
• C)$10,000.

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